Fitness tracker builder Jawbone has put a orator business adult for sale, according to mixed sources.
The association has been pitching intensity buyers for a Jambox wireless orator business so it can concentration exclusively on a health and wearables business. At a same time, Jawbone has been operative with third-party distributors to repay a remaining speakers in sell outlets, one source said.
Jawbone declined to comment.
Jawbone, a one-time Silicon Valley darling, has had a tough integrate of years amid layoffs, foe with wearable companies like Fitbit and Apple, product delays, and executive shuffles. In November, Jawbone laid off 15% of a tellurian workforce, or about 60 people.
Earlier this year, a association raised some-more cash, according to tech news site Recode. But Jawbone was usually valued during $1.5 billion in a understanding compared with $3 billion in a prior appropriation turn in Apr 2015. A reduce valuation, famous as a down round, is a divulgence pointer of financier doubt about a startup. Typically, startups try to do all they can to equivocate being tarnished by such a funding.
Jawbone also became enmeshed in lawsuits with obvious agreement manufacturer Flex (formerly Flextronics) and opposition Fitbit. In 2014, Flextronics sued Jawbone for crack of agreement and claimed in a lawsuit, that has given settled, that Jawbone’s uneasy financial position prevented it from profitable Flextronics $20 million it was owed. In 2015, Jawbone sued Fitbit over leaked trade secrets as good as obvious infringement. Jawbone recently suffered a tiny detriment in a ongoing lawsuit when a decider ruled in Fitbit’s preference over a obvious dispute. However, Jawbone’s fit that alleges Fitbit
stole trade secrets continues.
Last year, Fortune profiled Jawbone and a CEO, Hosain Rahman, divulgence some of a company’s struggles.
Jawbone is best famous for a Up aptness trackers, a wrist-worn device that marks things like stairs taken, sleep, and heart rate. But a association also has a orator business, that debuted in 2010, and constructed several opposite sizes of wireless speakers. Although it was an early entrant into Internet-connected unstable speakers, it’s a marketplace that is jam-packed with competitors including determined companies like Bose. As of final year, Jawbone’s share of a orator U.S. marketplace dwindled to 5%, call a company’s co-founder and chairman, Alex Asseily, to tell Fortune’s Adam Lashinsky that offered a non-wearable business would be “painful” though prudent.
“Over a final year we’ve come to terms with a fact that a destiny value is focused on wellness,” Asseily said. “Audio is great, and we consider a audio products, quite Jambox, are sexier. But it’s not as large a market.”
For some-more about wearables, watch:
The large doubt is either Jawbone will find a customer for a business and, if so, during what price. It’s misleading who a intensity buyers might be.
The marketplace for health trackers and wearables is strong. Jawbone’s Up aptness trackers debuted in 2011, and now a association offers 4 versions of a tracker. Recently, Jawbone allocated a arch medical officer, Dr. David Benaron, to manage a health initiatives.
But Jawbone also faces unbending foe in wearables from Fitbit, Apple, Xiaomi, and Samsung, that are all forward of Jawbone by shipments and marketplace share, according to a report from investigate firm, IDC. Fitbit has a 25.9% marketplace share in wearables followed by Xiaomi with a 15.4% share, and Apple with a 14.9% share.
Since a founding, Jawbone has lifted hundreds of millions in try collateral from marquee investors including Khosla Ventures, Andreessen Horowitz, Sequoia Capital, and Kleiner Perkins. The association depends Yahoo CEO Marissa Mayer as a house member.