Google buys $40 million worth of smartwatch tech from Fossil Group

Enlarge (credit: Valentina Palladino)
Wearables have brought Google and the fashion-focused Fossil Group closer together. Today, Fossil announced it will sell intellectual property related to smartwatch technology to Google in a deal worth $40 million. Upon news of the deal, Fossil Group shares jumped about 8 percent today.

Along with the IP, a section of Fossil's research and development team focused on wearables will join Google. However, the announcement highlights Google and Fossil's 'shared investment in the wearable industry,' which likely means that this deal will not quell Fossil's wearable efforts entirely. Fossil Group—which includes Diesel, Armani, Skagen, and Michael Kors—has launched smartwatches running Wear OS and hybrid smartwatches across 14 of its brands.
Greg McKelvey, Executive Vice President and Chief Strategy and Digital Officer at Fossil Group, said the following in a statement:
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