FIT - If Fitbit Finds a Willing Suitor it Should Take the Offer
The bounce Fitbit (NYSE: FIT) shares made on rumors that it was putting itself up for sale has since faded. But, the proverbial cat is out of the bag. The fitness tracker company finally seems to have accepted it can't continue as a viable entity on its own, particularly now that Apple (NASDAQ: AAPL) has launched a more moderately priced smartwatch.
Investors are torn, of course. On the one hand, agreeing to an acquisition will eliminate any chance of a home-grown turnaround that validates the company's original vision. On the other hand, folding itself into a suitor's operation would be a graceful exit of a tough situation competing against the world's largest tech companies.
Of the two camps, the latter is seeing matters more clearly. Fitbit would be best served by selling itself to a better-diversified and deeper-pocketed player that can fully leverage the respected brand name.