Fitbit Inc. (FIT) - Get Fitbit, Inc. Class A Report shares looks set to be active Thursday after the wearable tech group said it formally closed the $2.1 billion takeover by Google parent Alphabet (GOOGL) - Get Alphabet Inc. Class A Report.
The U.S. Department of Justice, however, told Reuters that its probe into the deal remains ongoing, adding that it has not reached a final decision as to whether it will pursue and enforcement action.
Google received European Union approval for the deal late last year after agreeing to not use Fitbit health and wellness data for ads. It will separate Fitbit data from Google ad data and allow Fitbit users to deny data access to other Google services for the next 10 years.
"This deal has always been about devices, not data, and we’ve been clear since the beginning that we will protect Fitbit users’ privacy. We worked with global regulators on an approach which safeguards consumers' privacy expectations, including a series of binding commitments that confirm Fitbit users’ health and wellness data won't be used for Google ads and this data will be separated from other Google ads data," Google said in a blog post published Thursday.
"We’ll also maintain access to Android APIs that enable devices like fitness trackers and smart watches to interoperate with Android smartphones, and we’ll continue to allow Fitbit users to choose to connect to third-party services so you’ll still be able to sync your favorite health and fitness apps to your Fitbit account," Google added.
Fitbit shares were halted from pre-market trading on the New York Stock Exchange Thursday after changing hands at $6.93 each. The stock has surged more than 60% since the day prior to the first news of the Google purchase in November 2019.
Google shares, meanwhile, fell 0.4% in early afternoon trading on the Nasdaq to change hands at $1,739.80 each, pegging their six-month gain at around 15%.