Under Armour is selling its popular fitness tracking platform MyFitnessPal to investment firm Francisco Partners for $345 million. The company said in a press release that Under Armour wants to simplify its brand, focusing on the “target consumer – the Focused Performer,” and its “UA ecosystem.” The sale is expected to go through in the fourth quarter of 2020.
As TechCrunch speculates, it seems unlikely “focus” is the only reason Under Armour is selling the fitness app. The company originally purchased MyFitnessPal for $475 million five years ago which means its’ selling the platform at a $130 million loss.
The choice comes at a time when apps like MyFitnessPal face tough competition from major players. Brands such as Apple have dominated the entry-level fitness market with the combination of the Apple Watch with Apple Health. The company is also planning to launch its Apple Fitness+ subscription service before the end of the year.
And then there’s Peleton for those who want to step up their fitness game. The company has completely dominated the “prosumer” market with its treadmills and bikes. It also offers a rather comprehensive subscription service that does not rely on its super-popular, yet fairly expensive hardware. The service offers live classes that you can join with others from around the world.
MyFitnessPal includes the MapMyFitness and Endomondo platforms. However, Under Armour says that its MapMyFitness platform, which includes MapMyRun and MapMyRide, will not be going away and will continue to work for the foreseeable future. The same cannot be said for the Endomondo platform, which will be sunset by the end of 2020.