06 October 2020
Google and Fossil today signed a $40 million deal where Fossil will sell some of its smartwatch technology and members related to the R&D team responsible for creating the intellectual property to Google.
Immediately after the news broke out, Fossil’s shares jumped about 8 percent. This deal also means that Google will now have an experienced team which can work internally on its WearOS platform for wearables. This deal also hints that Google may be working on its own smartwatch.
Fossil group is one of the few brands that has been continuously making smartwatches based on WearOS which has otherwise not really been able to compete with rival Apple’s wearables as yet.
According to Fossil’s executive vice president of chief strategy and digital officer, Greg McKelvey the technology is a “new product innovation that’s not yet hit the market.” It is still not clear as to what the innovation is and why Google acquired it, however, the fact that Google saw it and found that it could bring the technology to masses in form of a product and expand it across the industry.
"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," said Stacey Burr, vice president of product management, Wear OS by Google.