Read the following WSJ article. Read the following WSJ article, and submit your answer report (about 2-3 pages)
Google to Buy Fitbit, Amping Up Wearables Race
By Patrick Thomas Rob Copeland | November 1, 2019
https://www.wsj.com/articles/fitbit-to-be-acquired-by-google-llc-11572613473
Classroom Application:
This article provides an opportunity to discuss Merger &Acquisition dynamics, including strategic rationale and pricing, referencing a well-known acquirer and target.
Questions:
1. According to the article, what is the strategic rationale for Google’s acquisition of Fitbit?
2. What is the consideration mix (stock vs. cash) of Google’s offer and implied premium to Fitbit’s recent share price?
3. Based on the article, why might Google’s acquisition of Fitbit be controversial?
