After last week’s report from FT, another report says that Fitbit is reportedly planning to purchase the software assets of Pebble at under $40 million including Pebble’s software engineers, the watch OS, watch apps, and cloud services.
Moreover, this deal does not cover any hardware including the Pebble smartwatches and as a result, the Pebble Time 2 and Pebble Core could get canceled. The refunds will be issued through to Kickstarter backers.
Pebble has announced three watches this year back in May — the Pebble 2, Time 2, and the Pebble Core. However, the company started shipping the Pebble 2 a week ago, to those who funded the startup through crowd-funding site Kickstarter.
After the acquisition, the Pebble stocks will be useless and the money will be directed automatically to the debt holders, vendors, main equity investors, and Kickstarter refunds for the Time 2 and Pebble Core orders, according to the report.
Additionally, the remaining assets of the company including product inventory and server equipment will be sold separately. Once the acquisition is confirmed, the CEO of Pebble Eric Migicovsky will depart from the company, while the employees who aren’t going to make it to the FitBit will be offered with a severance package.