According to a report by Reuters, Google's parent company Alphabet may buy the smartwatch manufacturing company Fitbit. After the report was released Fitbit's stocks went up by 41% within a few minutes.
Although Google has joined hands with Apple Inc. and Samsung Electronics Co Ltd. for developing smartphones, it hasn't made any wearable devices yet.
There have been many rumors over the past few years that Google was interested in launching Google Pixel-branded smartwatches, but called off the plans over concerns that the new watches would 'bring down the name of Google hardware brand'. Later on, these LG manufactured watches came out as LG Watch Sport and LG Watch Style.
Afterward in 2017, Google had acquired members of the HTC smartphone engineering team to work on its Pixel phones. Similarly, Fitbit acquisition would be a stepping stone for Google to grow its presence in the wearable devices industry, giving the giant a chance to expand its portfolio of homegrown products. It is unclear if Fitbit would work independently with Alphabet or join with the Google hardware team after a deal is signed.
Details about the offer made to Fitbit by Google have not been disclosed yet and there's no certainty that the negotiations between the two companies would result in a deal.
Both Google and Fitbit have refused to comment on the speculations.