Google Buying Fitbit is Not a Done Deal in 2020
Arbs are having a hard time figuring out how to play Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google and its pending acquisition of wearables pioneer Fitbit (NYSE: FIT). Fitbit stock traded as high as $7.26 the day that the $2.1 billion deal was announced more than three months ago -- within sweating distance of the $7.35 all-cash buyout price -- but it has been drifting lower ever since.
The transaction that is expected to close later this year is no longer a sure thing, and the stock chart bears out the skepticism. Fitbit stock enters this new trading week at $6.64, closer to the $6.18 price it was at the day before the head-turning acquisition was announced than Google's proposed buyout price. You don't need to be a math whiz to know that the market has its doubts about this deal going through anytime soon.
Image source: Fitbit.
Source Fool.com
