Alphabet Inc, Google's parent company, has reportedly made an offer to acquire Fitbit, a prominent US wearable device company. This move signifies Google's strategic consideration of expanding its presence in the highly competitive wearable device market. Although the certainty of Fitbit's sale remains unconfirmed, news of the potential acquisition led to a significant 27% rise in Fitbit's shares, boosting its market capitalization to $1.4 billion, while Alphabet shares also saw a 2% increase.

While both Google and Fitbit have refrained from commenting on the ongoing negotiations, a Reuters source has confirmed their existence. The specific price offered by Google for Fitbit has not yet been disclosed to the public. This bid for Fitbit is not Google's inaugural venture into the wearable devices sector; earlier, it acquired the intellectual property for smartwatch technology under development from Fossil Group Inc for $40 million, although no wearable device has materialized from this acquisition to date.

Google's renewed interest in Fitbit is seen as a strategic opportunity to directly enter the wearable device market with established offerings such as activity trackers and wireless-enabled technology capable of measuring vital data like heart rate and sleep quality. This comes at a time when the fitness tracking sector faces intense competition, with a dominant share being captured by more affordable alternatives from Chinese companies like Huawei Technologies Co Ltd.

Should the acquisition proceed, Google could significantly deepen its integration into users' daily lives. Fitbit's fitness trackers and smartwatches could be seamlessly integrated with Google's existing software and applications, such as Google Maps and Calendar, opening up new functionalities like mapping jogging paths and setting task reminders. Furthermore, with Google's extensive reach and popularity, owning its own line of smartwatches could position it as a formidable competitor to established smartwatch makers, notably Apple.

Fitbit has recently navigated its own set of challenges and developments. In July, the company attributed a cut in its 2019 revenue forecast to disappointing sales of its then-newly launched, cheaper smartwatch, the Versa Lite, priced at $160. However, Fitbit has since introduced the Versa 2 smartwatch, which boasts enhanced capabilities including Amazon.com Inc's voice assistant Alexa, online payments, and music storage. Additionally, Fitbit secured a significant contract with the Singapore government to provide approximately 1 million fitness trackers and associated services for a public health program. The company's founders, James Park and Eric Friedman, have also expanded into the healthcare market through partnerships with health insurers and the acquisition of startups like Twine Health. Reportedly, Fitbit has been in discussions with investment bank Qatalyst Partners to explore a sale, indicating a high probability of an eventual acquisition, though Google's specific plans for these assets, if acquired, remain unclear.