Web store Amazon would like to acquire pandemic darling Peloton, the maker of fitness equipment for home use. There would also be other interested parties, reports business newspaper The Wall Street Journal. Amazon has not yet made an official takeover offer, according to the newspaper, but has consulted advisors. It is unknown whether there will actually be an offer and whether Peloton would accept it.
In January, it was announced that activist shareholder Blackwells Capital LLC is aiming to sell Peloton. Blackwell’s CEO also wants to evict John Foley.
The Peloton share price is 80 percent lower than a year ago. The company grew rapidly at the start of the pandemic. In January, business channel CNBC reported that the company had to temporarily suspend production of its expensive exercise bikes and treadmills due to a sharp drop in demand. Peloton denied that news, but with reported revenue of $1.14 billion in the fourth quarter, the company fell short of analysts’ expectations.
Amazon interested in Peloton acquisition
Source link Amazon interested in Peloton acquisition