Fitbit to Acquire Smartwatch Maker Pebble’s Assets

Smartwatch maker Pebble has confirmed the rumors that it is indeed shutting down operations. Some of its members are scheduled to join Fitbit, a tech company focused on wearable technology.

“Due to various factors, Pebble is no longer able to operate as an independent entity,”
“We have made the tough decision to shut down the company and no longer manufacture Pebble devices.”
-Eric Migicovsky, CEO and founder at Pebble

Founded by Eric Migicovsky, Pebble pioneered wearable technology and developed wrist-based notifications light years before Apple and many smartwatch manufacturers.  Pebble gained popularity from the crowdfunding platform Kickstarter. This method of funding allowed companies to acquire large sums of capital without the trade-off of overhead. This apparently, wasn’t enough to save Pebble from crumbling.

Rumors emerged last month that Fitbit was set to acquire Pebble for approximately anywhere from $34 million to $40M. The company has been experiencing financial troubles as of late and is said to be in millions of debt.

The acquisition doesn’t include the hardware itself. This means that Pebble is no longer making, selling, or promoting watches in anyway. However, all its existing devices will continue to function normally. Fitbit will however be responsible for any future software updates.

The company’s blog further stated that “The Pebble SDK, CloudPebble, mobile apps, developer portal, appstore, timeline API, dictation service, messaging service, and firmware will all continue to operate without interruption. Further down the road, we’ll be working to phase out cloud services, providing the ability for the community to take over, where possible.”

Fitbit’s shares went up to $8.07 after the announcement. This is still a far cry from their high of $47.6 last July. Only time can tell if Fitbit will succumb as well to the financial pressures of today’s startup industry.

Delicious Bought by Founders of Youtube From Yahoo

Another acquisition in social media has just happened. Social bookmarking site Delicious was bought from Yahoo! by the founders of YouTube namely, Chad Hurley and Steve Chen, and will now be a part of their internet company named AVOS. This was published as a press release at Delicious’ official blog on Wednesday, April 27, 2011. However, no amount has been declared.

Apparently, Yahoo will operate Delicious until about July 2011 while the transition is going on, in which all users’ information will be transferred to its new owner afterward. As noted by Delicious, they have chosen AVOS to be their new home because they believe Delicious can receive more love and attention, and can move forward as well.

“We’re excited to work with this fantastic community and take Delicious to the next level. We see a tremendous opportunity to simplify the way users save and share content they discover anywhere on the web.” AVOS CEO Chad Hurley said on a blog post.

With that, Delicious users will be asked to allow the site to transfer all the bookmarks, personal account and all associated data, in which a dedicated page was created for it.

By agreeing on the Terms of Service (TOS), Delicious will do the transferring of data which include Delicious username, Delicious password, Email address, full name, bookmarks, among others. For more information, Delicious is inviting all users to visit their Frequently Asked Questions (FAQ) page.

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