Jawbone Begins Liquidating Its Assets

Inside The 2015 Consumer Electronics Show
Hosain Rahman, chief executive officer of Jawbone Inc., speaks at a news conference during the 2015 Consumer Electronics Show (CES) in Las Vegas, Nevada, U.S., on Monday, Jan. 5, 2015. This year's CES will be packed with a wide array of gadgets such as drones, connected cars, a range of smart home technology designed to make everyday life more convenient and quantum dot televisions, which promise better color and lower electricity use in giant screens. Photographer: Michael Nagle/Bloomberg via Getty Images
Photograph by Michael Nagle — Bloomberg/Getty Images

Jawbone, the consumer electronics company that pioneered Bluetooth cellphone headsets, wireless speakers, and fitness trackers, has begun liquidation proceedings as its co-founder and CEO Hosain Rahman moves onto a new project.

Rahman has reportedly started a new health-focused hardware and software services company called Jawbone Health Hub, according to The Information (subscription required), which first reported news of the liquidation. This new company will reportedly service Jawbone’s devices, The Information reported.

Jawbone has had a volatile ride in its 18 years of existence, raising hundreds of millions from Silicon Valley’s biggest firms, including Andreessen Horowitz, BlackRock, Khosla Ventures, Sequoia Capital, Kleiner Perkins, and Silver Lake Waterman. The company, which had amassed 450 employees and a valuation of $3 billion by early 2015, struggled to ship products on time and was outmaneuvered by rivals like Fitbit (FIT). It was further weakened as sales of the once-hot wrist-worn fitness trackers softened. Investors in Jawbone could lose millions as a result of the liquidation.

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Meanwhile, Jawbone’s lawsuit against Fitbit and five former employees in California state court over alleged theft of trade secrets, will be handled by Sherwood Capital, the same firm tasked with liquidating the company’s assets, according to The Information.