Simple answer to this question is, What are you wearing on your wrist? Thats the main reason for this deal that Google was outranked by Apple due to Apple Watch (the hardware part) where people were switching from android to Apple. Health and Fitness industry is driving force here.
Fitbit one of the largest companies in wearable technology devices field, snapped up by Google and worries for Xiaomi and Apple.At the moment Google Fitbit acquisition is pending regulatory approval.
Google is buying Fitbit: Now What?
After getting Fitbit, big G is going to challenge Apple and Xiaomi in the field of fitness wearable products.Another untapped area for Google that got her attention now.
Google is very aggressive to expand business and also in talks about buying Firework, a video-sharing startup that is a rival to TikTok.
Google is concerned about Tiktok’s growing popularity and wants to buy Firework. During the downloads, the short video social app was in front of Youtube or Whatsapp.
Google has been discussing the purchase of the short video social platform Firework, a competitor of Tiktok. The Wall Street Journal reports , citing informed circles. Firework, based in Redwood City, California, was valued at over $ 100 million in a round of financing earlier this year. A purchase price would usually be higher.
Google and Firework have not yet discussed the price of a takeover, according to the report. The negotiations may not lead to agreement and there is a possibility that the companies will only become partners.
Also, Weibo, the Chinese Twitter competitor, is interested in Firework, even if the negotiations are not as advanced according to informed circles as with Google.
Video portals for short playback clips and other videos are popular with kids and teens. The Chinese short video app Douyin, known abroad as Tiktok, is an offer of the company. According to the Analytics platform Sensor Tower, Tiktok’s monthly downloads were ahead of Whatsapp, Youtube and Google Maps. According to media reports, the playback app Musical.ly was acquired by By tedance in November 2017 for around $ 800 million and merged with Tiktok. At Musical.ly, the lips are to be moved in sync to songs or movie quotes in a maximum of 15 seconds long clips.
Tiktok’s parent company, Bytedance, based in Beijing, has a value of $ 75 billion. Facebook responded to Tiktok’s growing popularity in 2018 with the Lasso app. Snap has also introduced new features.
Firework was founded last year by former executives of Snap, Linkedin and JPMorgan Chase. Earlier this year, Firework received approximately $ 30 million from venture capital firms such as IDG Capital, GSR Venture and Light speed Venture Partners China.
Small Companies being bought out:
It is always a good deal for large organisations to acquire smaller firms because of two main factors, 1 | Low Risk & 2) Exponential Growth.
Improved buying power, resources of a larger company, established sales processes, new customer relationships, additional management resources, etc. all tools designed to improve the financial position of the newly acquired business.So big companies buy small companies.
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