FIT - Can Fitbit Survive Without Google?
This isn't the way most acquisitions work out. Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google should've closed on its $2.1 billion deal to purchase wearables pioneer Fitbit (NYSE: FIT) by now. It's supposed to close in 2020, but Tuesday marks exactly 10 months since the deal was announced. There are some serious doubts that this union will take place. Fitbit's stock price tells you everything you need to know.
It's an all-cash deal, and investors know the drill. The stock of the company being acquired may initially surge to near the buyout offer -- with thin hopes of a bidding war -- but eventually settles comfortably below the takeout price. The shares then inch higher until the deal is complete, but that's not happening here.
Image source: Fitbit.