Pebble is bankrupt. It owes more money to people/companies than it has/is owed. People whom Pebble owes money to ("creditors") will be ordered in a list. FitBit

Pebble is bankrupt. It owes more money to people/companies than it has/is owed. People whom Pebble owes money to ("creditors") will be ordered in a list. FitBit is buying some of the assets (software, IP, etc.). The proceeds from this sale will go to their creditors, proceeding down the list. The creditors at the end of the list won't get any of the money that they are owed. The founders and investors walk away with nothing because the company's value is negative. Limited liability means that they are not personally on the hook for any of the debts. Pebble is winding down operations. Warranty, support, &c. stops because Pebble as an entity will cease to exist. FitBit isn't buying Pebble the entity, it is buying some of the things of value which Pebble the entity owned.