Fitbit bought Pebble for patents. The brand will be liquidated, device support will be terminated

About a week ago, there was a rumor in the network that Fitbit was preparing to buy its competitor Pebble for $ 30–40 million. The information turned out to be reliable and the deal actually took place. Yesterday, the last Pebble official blog appeared to the users:

Dear Pebblers,

Thank you all for being our loyal supporters and supporting the Pebble community and brand. You helped us start something fantastic when you supported our first Kickstarter project. Since then, we have shipped over 2 million Pebble devices worldwide!

However, due to various factors, Pebble can no longer operate as an independent legal entity. We made a difficult decision and shut down the company, which means that Pebble devices will no longer be made.

What Pebble owners need to know:

• Devices will continue to work in normal mode.
• Over time, their functionality and quality of service can be reduced.
• All participants of the latest fundraising campaign for Kickstarter will be refunded their money no later than December 16, 2016.
• Orders for pebble.com are no longer accepted, including the pre-orders of Pebble 2, which have not yet been shipped or sent to customers, will not be fulfilled. Money will be refunded.
• Pebble devices are no longer serviced or repaired, unless the warranty case.
• Purchased Pebble watches can be returned according to retailer policies.

The buyer Pebble made a competitor in the market - the company Fitbit. The transaction took place the day before yesterday, December 6, 2016. As part of the takeover, not only Pebble moved to Fitbit, but also all assets, brand and intellectual property. Fitbit management immediately announced the termination of the release of devices under the Pebble brand and the first (and probably not the last) reduction of the state of the acquired company by 40%.

The main goal of the deal was that Fitbit management identified Pebble patents and technologies that will allow the manufacturer to compete more successfully with other market players, primarily with Apple. The whole Dev Pebble team will now work on Fitbit devices.

The main reason for selling Pebble is the lack of growth in the smart watch market - many analysts have overestimated this trend. The company also experienced financial difficulties and required constant cash infusions from investors in order to stay afloat.