Apple’s iWatch May Benefit From Basis’s Plans to Sell
As the hubbub around smartwatches continues to grow, Basis Science, the company behind the Basis Health Tracker Watch, may have more than one high-profile bidder. According to two sources who spoke with TechCrunch on Sunday, the company is currently on the market.
Basis has been looking for a buyer among tech giants like Google (NASDAQ:GOOG), Apple (NASDAQ:AAPL), Samsung (SSNLF.PK), and Microsoft (NASDAQ:MSFT). Though the company hasn’t settled on an asking price, it’s been rumored that Basis could fetch a sum in the “sub-hundred million” dollar range, according to sources who spoke to TechCrunch.
The speculated asking price for Basis means that investors could walk away with a small return; Northwest Venture Partners, Mayfield Fund, and Intel Capital have ponied up about $30 million for the company.
If, however, Basis decides not to sell, the company would likely begin looking for another round of funding for its product, which has been praised for the accuracy of its data collection and reporting services but criticized for sporting one of the clunkiest and least elegant designs out of the recent throng of new smartwatch releases.
The main competitors for Basis would likely be one of the top four tech giants — Google is currently working on a wristwatch of its own and is poised to be a leader in artificial intelligence and hardware arenas.
Likewise, rumors regarding Apple’s much-hyped iWatch have been flying for months now, with several new hires speculated to be part of the shrouded iWatch team. Samsung already has a smartwatch available on the market, but its Galaxy Gear design has often been criticized for being excessively heavy, oversized, and clunky. Many reviewers have speculated that a reboot is due.
Microsoft may be less inclined to jump into the bidding for Basis, reports TechCrunch. The company hasn’t delved too deeply into the wearables and hardware trend, with only the Kinect to its name.
Because the Basis watch does have a lot going for it, it could be a huge boon to tech companies hoping to develop their own wearable device. Apple has allegedly hired an impressive team of fitness experts and health advisers, and it’s possible the combination of Basis’s technology with Apple’s hardware design could yield a particularly impressive smartwatch indeed.
The sale would also alleviate pressure on Basis, which would likely be forced to seek yet another round of capital for further research and development from its investors, according to TechCrunch.