After settling patent infringement lawsuits in the run-up to Christmas, Fitbit supposedly offered to acquire Jawbone for an undisclosed amount.
The two firms have been at each other’s throats for a few years, accusing each other of patent infringement and stealing trade secrets. Jawbone originally sued Fitbit in May 2015 and Fitbit filed a counter-suit later in the year.
Talks quickly ended once Fitbit revealed its offer, which was much lower than the $1.5 billion valuation Jawbone received last year, according to The Financial Times.
Jawbone has been under pressure to find a solution to its financial problems by Blackrock, a major stakeholder in the firm. According to sources inside the company, it has been unable to find a buyer or investor willing to value the company “fairly.”
The private company dropped in value from $3 billion to $1.5 billion in a year, and it seems most bidders have devalued Jawbone even more in 2017.
Fitbit has been scooping up a few wearable startups in the past few weeks, possibly due to analysts cooling their predictions on industry growth. The withdrawal of interest may have lowered the value of some startups, making them cost effective for the firm.