According to sources familiar with the matter, the retail behemoth Amazon is considering buying Peloton and is in talks with advisers regarding whether and how to proceed. Also, the Financial Times reported at the end of last week that Nike is evaluating a bid for Peloton.
All parties have declined to comment on the matter.
The news came just days after activist investor Blackwells Capital urged the company's board to put it up for sale and remove CEO John Foley, accusing him of deals that set high fixed costs and holding on to increased inventory while misleading investors about the need for capital. During the COVID-19 lockdowns, Peloton's sales surged as people bought equipment to workout at home. But as the restrictions started to be lifted, the company's fortune began to fade.
Peloton is going through a rough time trying to soften the blow to its growth by cutting the price of its famous bike and putting more money into ads. In January, Peloton revealed that it was reviewing the size of its workforce and working on the production levels. These measures followed a report which stated that the company was temporarily halting production of its popular fitness bikes and treadmills after a significant drop in demand.
Now all eyes are on Peloton Q2 2022 earnings, due February 8th.
At the moment of writing, Peloton's stock price was trading 23.25% higher.
Sources: cnn.com, ft.com, wsj.com