It looks like Jawbone, the activity tracker company that has been teetering on the brink of collapse for a few years now, is finally shutting down. Citing sources close to the company, that the company has begun liquidation procedures.
However, the company's long-rumored health device – which was supposed to save the company – could be coming to market via a new spinoff company, also led by CEO Hossain Rahman, called Jawbone Health Hub. That company has already absorbed some departed Jawbone employees and will apparently service Jawbone devices going forward.
Jawbone has been in trouble since at least May 2015, when the company accepted a $300 million loan from Blackrock Capital. According to leaked emails, Blackrock was pressuring Rahman to sell the company last fall, but Rahman was instead seeking additional funding to stay afloat.
But even before that there was no shortage of signs of disfunction, with the company losing key executives, dumping its speaker business, , and not announcing any new products for several years. That's not to mention the seemingly never-ending multi-front legal battle with competitor Fitbit.
Last we heard, the company's planned Hail Mary was a more clinically-focused wearable, likely building on the company's 2015 acquisition of Spectros. Now it looks like those plans will be realized at the new company, Jawbone Health Hub.
The question going forward is whether a new company -- with the same leadership and name as the old one -- will be able to shake Jawbone's old woes, and whether investors will have enough confidence to invest in such a business.