Fitbit (NYSE:FIT) news for Monday about the company considering a sale of its business has FIT stock moving.
According to recent reports, Fitbit is in talks with investment bank Qatalyst Partners about a possible sale. However, the company hasn’t decided on a sale yet and it just seeking an advice on if it should look more into the possibility.
Anonymous sources in the report claim that Qatalyst Partners has been pushing Fitbit toward such a plan. While these signs point toward the wearables company considering the action, it doesn’t mean it will happen.
The idea behind this Fitbit news is that it would allow the company to be picked up by a larger tech company. Specifically, these reports make mention of Alphabet (NSDAQ:GOOG,GOOGL), which is Google’s parent company, reports Reuters.
The idea of Alphabet picking up Fitbit is an interesting one. Fitbit has had trouble dealing with larger rivals in the wearables market, like Apple (NASDAQ:AAPL). With the help of Alphabet, the company’s devices may stand a better chance at reaching more customers.
Fitbit and Google coming together isn’t unheard of. Back in 2018, the two companies reached an agreement that connects the FIT wearable devices to medical records systems. It also switched over to Google’s cloud services as well, reports USA Today.
FIT stock was up 1% as of Monday afternoon, but is down 23% since the start of the year.
As of this writing, William White did not hold a position in any of the aforementioned securities.