The purchase price is less than $40 million, and Pebble’s debt and other obligations exceed that, two of the people said. Fitbit is not taking on the debt, one of the people said. The rest of Pebble’s assets, including product inventory and server equipment, will be sold off separately, some of the people said. An announcement is imminent, the people added. Fitbit declined to comment and Pebble Chief Executive Officer Eric Migicovsky didn’t respond to a request for comment.
The Pebble fire sale is the result of financial struggles in a smartwatch market that failed to grow as quickly or as large as initially hoped and hyped. Industry shipments slumped 52 percent in the third quarter, according to research firm IDC, and Pebble cut a quarter of its staff earlier this year… More at Bloomberg.
It’s a shame to see Pebble disappear in this manner, but it’s been clear for some time that the company has been struggling. A wonderful start was not driven on by products that enhanced the platform.