Analysis the M&A in Wearable Market: Evidence from Google purchase Fitbit

Abstract

With the continuous progress of science and technology and the improvement of people's living standards, the wearable device market is gradually rising. These devices can be equipped with various sensors and have functions such as monitoring human health and statistical movement data, which have attracted the attention and favor of consumers. The content of this paper is a case analysis of Google's acquisition of Fitbit, which is mainly analyzed by comparing the financial data of the two companies before and after the acquisition. According to the evaluations, it is found that the acquisition is a success for both companies. For Google, operating income, net profit and total asset scale have increased significantly, which has a positive impact on the company, making the company's assets belong to an upward trend. For Fitbit, the acquisition has gradually reduced its loss and made its total assets more stable, with good development potential in the future.