GOOGLE BUYS FITBIT FOR $2.1B, STEPPING BACK INTO WEARABLES The situation

Google is buying Fitbit for about $2.1 billion, enabling the internet company to step back into the hotly contested market for smartwatches and health trackers.

Why it happened

Fitbit is a pioneer in wearable fitness technology, but it’s been shredded by that competition. Google, meanwhile, has been developing Wear OS software for other manufacturers to build wearable devices, but they haven’t gained much traction in the face of competition from Fitbit, Apple, Samsung and others.

The deal to buy Fitbit could give Google a needed boost.

“Google doesn’t want to be left out of the party,” said analyst Daniel Ives of Wedbush Securities.“If you look at what Apple has done with wearables, it’s a missing piece of the puzzle for Google.”

Fitbit makes a range of devices, from basic trackers that mostly count steps to smartwatches that can display messages and notifications from phones.

Google said it won’t sell ads using the sensitive health data Fitbit devices collect, continuing promises made by Fitbit.

How Google might use Fitbit

But that likely won’t stop Google from sucking up other personal data from Fitbit devices. Fitbit also has GPS models that could track users’ locations. That could help Google know a runner stopped at a coffee shop on the way back, allowing Google to then display ads for rival coffee shops.

More importantly, having a Google device on the wrist could drive its wearers to use Google services even more — giving Google more ways to collect data and sell ads.

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GETTY IMAGES Fitbit makes a range of devices, from basic trackers to smartwatches.