What happened
Shares of Fitbit (FIT) climbed as much as 23% on Friday before closing up 11.9% after Reuters reported that the maker of wearable fitness devices is considering a sale.
So what
Citing "people familiar with the matter," Reuters says Fitbit has held discussions with investment bank Qatalyst Partners to determine "whether it should engage with potential acquirers." The sources also noted Qatalyst has tried to persuade Fitbit to "explore its options for several weeks," listing Google parent Alphabet (GOOG 0.74%) (GOOGL 0.55%) and private equity firms among its prospective suitors.
Image source: Getty Images.
Now what
The sources also cautioned that Fitbit hasn't made any firm decisions, so there are no guarantees its discussions with Qatalyst will lead to a deal. But with shares down more than 30% year to date as the company strives to find sustained, profitable growth while implementing its multiyear transformation plan, it's hardly surprising to see the stock soaring today in response.
