Peloton Draws Takeover Interest From Amazon and Nike

Bloomberg — Peloton Interactive Inc. is attracting curiosity from potential suitors together with Inc., the Wall Road Journal reported, citing folks acquainted with the matter. Shares of the house health firm surged as a lot as 43% in prolonged buying and selling Friday.

Amazon has been chatting with advisers a few potential deal, the newspaper mentioned. There’s no assure the tech big will comply with via with a proposal or that Peloton, which is working with its personal advisers, can be receptive to an strategy. Different potential suitors are circling, the WSJ reported, although no deal is imminent.

Nike Inc. can be contemplating a separate bid for Peloton, attracted by the drop in Peloton’s share worth, the Monetary Instances reported, citing folks acquainted with the matter. Neither Nike nor Amazon have held direct talks with Peloton, the FT reported.
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Amazon and Peloton declined to remark to each papers and Nike didn’t instantly reply to the FT’s request for remark.

Peloton was a darling of the pandemic as folks at house throughout lockdowns turned to its health bikes and on-line lessons for train. However shares have fallen greater than 80% from their excessive a 12 months in the past because the gradual easing of pandemic restrictions fueled concern that development would sluggish. Activist investor Blackwells Capital LLC final month issued a letter demanding the corporate hearth co-founder and Chief Govt Officer John Foley and pursue a sale. Blackwells mentioned within the letter that potential consumers may embrace Apple Inc., Walt Disney Co., and Nike.

The corporate’s public picture additionally took a success in December, when HBO Max’s “Intercourse and the Metropolis” reboot killed off a Peloton-riding character.

Amazon’s curiosity could also be linked to its effort to achieve a higher position in well being care, in addition to the potential to market to Peloton’s virtually 3 million subscribers. The e-commerce big in 2020 launched its wearable Halo merchandise to compete with Google-owned Fitbit and different health gadgets.

Peloton’s shares jumped to a excessive of $35.25 in prolonged buying and selling after closing Friday at $24.60 in New York — under its September 2019 preliminary public providing worth of $29.

–With help from Spencer Soper and Mark Gurman.


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