Personal Finance

Fitbit Nearly Acquired Jawbone Last Year

Jawbone Shares
Jawbone Shares

Data source: SEC filings. Chart by author.

As you can see, Jawbone's value plummeted starting in late 2014 and continuing through 2015 and 2016. As of the end of Q3 2016, GSV was valuing its Jawbone position at just $2,789 -- and that's not in thousands or millions like you often see in financial statements, either. That translates into about $0.02 per share, a far cry from the peak GSV valuation of $9.25 two years prior. Within this context, it makes perfect sense that Fitbit would only be willing to entertain a paltry offer and that it probably lowballed Jawbone.

It's also unlikely that Jawbone had much in the way of assets that Fitbit would be interested in. Jawbone's Up family of wearable fitness trackers are already getting decimated by Fitbit products like the Flex and more recent Flex 2, while Fitbit's recent acquisitions are all about smartwatches and software assets needed to create a platform. Jawbone doesn't make a smartwatch, nor does it operate a platform. Fitbit probably ended up saving some money by passing

Jawbone is now looking to pivot to the clinical medical device market -- if it can survive that long, that is.

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Evan Niu, CFA has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Fitbit. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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