Google appears to be renewing its bid for the wearables market. Engadget reports that Fossil will be selling its smartwatch IP to Google for $40 million.
As part of the deal, Google would receive “a smartwatch technology currently under development” and some R&D talent from Fossil would join Google’s team, per the outlet.
“Wearables, built for wellness, simplicity, personalization and helpfulness, have the opportunity to improve lives by bringing users the information and insights they need quickly, at a glance,” Wear OS VP Stacey Burr said in a statement.
“The addition of Fossil Group’s technology and team to Google demonstrates our commitment to the wearables industry by enabling a diverse portfolio of smartwatches and supporting the ever-evolving needs of the vitality-seeking, on-the-go consumer.”
“The addition of Fossil Group’s technology and team to Google demonstrates our commitment to the wearables industry by enabling a diverse portfolio of smartwatches and supporting the ever-evolving needs of the vitality-seeking, on-the-go consumer.”
As Engadget points out, much is still unclear about the nature of this deal. Either way, Wear OS has some catching up to do, as it lags behind competitors such as Apple, Fitbit and Samsung in the smartwatch category.
“Fossil Group's clear advantage is the appeal of the brands under its massive umbrella. It owns and licenses 14 brands, including popular names like Kate Spade, Skagen, Michael Kors, Armani, DKNY, Diesel and, of course, Fossil itself. Each of these already has its own Wear OS watch in its own signature style, leading to a diverse array of smartwatches for Fossil's customers to choose from,” says the outlet.
Meanwhile, the smartwatch business at Fossil will continue and has no plans of slowing down in the wake of this deal.
“Fossil Group has experienced significant success in its wearables business by focusing on product design and development informed by our strong understanding of consumers’ needs and style preferences,” Fossil EVP Greg McKelvey said in a statement. “We’ve built and advanced a technology that has the potential to improve upon our existing platform of smartwatches. Together with Google, our innovation partner, we’ll continue to unlock growth in wearables.”