Wearable device company Fitbit today disclosed that it paid $23 million to acquire the assets of smartwatch maker Pebble in the fourth quarter of 2016.
That’s lower than previous estimates; Bloomberg reported Fitbit did the deal for “less than $40 million.” Pebble raised more than $40 million in Kickstarter projects alone, as my colleague Ken Yeung reported.
The dollar figure accounts for both talent and intellectual property, Fitbit said in today’s earnings statement for the quarter that ended on December 31.
Fitbit today also disclosed that it paid $15 million for the assets of Vector Watch. That deal was announced in January.
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In the quarter Fitbit sold 6.5 million devices, down from 8.2 million in the fourth quarter of 2015. Revenue dropped from $711.6 million to $573.8 million. However, the number of Fitbit’s active users increased from 16.9 million to 23.2 million.
Fitbit stock was up slightly in after-hours trading despite the company missing on analysts’ non-GAAP net income and revenue projections. Looking forward, the company expects a, $0.18-0.20 non-GAAP net loss on $270-290 million in revenue for the first quarter of 2017. For all of 2017, Fitbit is expecting a $0.22-0.44 non-GAAP net loss on $1.5-1.7 billion in revenue.
