Categories Consumer, Retail, Technology

Google will buy smartwatch technology from Fossil for $40 million

Alphabet Inc.’s (GOOGL) subsidiary Google is buying smartwatch technology worth $40 million from Fossil Group (FOSL). The sale involves technology currently under development and as per the agreement, a part of Fossil’s R&D team who are working on the technology will transfer to Google. The transaction is expected to close this month.

Fossil stated that smartwatches have become its fastest-growing category and they have been rolled out across 14 of its owned and licensed brands.

Fossil and Google are already partners and together provide smartwatches that use Google’s wearable operating system, Wear OS. The wearables space is dominated by the likes of Apple (AAPL) and Fitbit (FIT) and Google is yet to find a foothold here. Although the details of the technology are not clear, there is a chance that Google and Fossil might soon roll out an innovative product that could boost its capabilities in the wearables business.

A look at how 2018 turned out for Google

Greg McKelvey, Executive Vice President and Chief Strategy and Digital Officer, Fossil Group, said, “Fossil Group has experienced significant success in its wearables business by focusing on product design and development informed by our strong understanding of consumers’ needs and style preferences. We’ve built and advanced a technology that has the potential to improve upon our existing platform of smartwatches. Together with Google, our innovation partner, we’ll continue to unlock growth in wearables.”

Fossil’s stock is up 3.2% while Alphabet’s shares have dipped slightly by 0.17%.


Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips.

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

Leave a Reply

Your email address will not be published. Required fields are marked *

Add Comment

Viewing Highlight