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02/08/2022

Rumor Has It Someone Wants to Buy Out Peloton

Several reports have surfaced that a handful of suitors are expressing interest in acquiring Peloton.
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Peloton app

Major retailers Nike and Amazon have both been floated as potential buyers by news outlets, including The Wall Street Journal. Reportedly, Amazon has been speaking with advisors about a potential deal. However, there is no guarantee Amazon will make an offer to acquire Peloton––or that Peloton would accept such an offer.

The rumors come after an activist investor recently penned an open letter to Peloton’s board of directors urging the company to sell and replace its CEO. The fitness company has faced a number of controversies and bad press in the past few years, including a reluctant recall of its treadmill product in mid-2021. 

The company has also lost much of its value as demand wavered through 2021, and more recently announced it was resetting its production levels. Peloton’s market value is around $8 billion––down from roughly $50 billion during the height of the COVID-19 pandemic, the WSJ reported.

Amazon could make sense as a buyer for the company, which has suffered from supply chain issues along with other retailers. Peloton’s subscription could also potentially be combined with an Amazon Prime membership, WSJ speculated. Amazon has also increasingly been pushing into the health category through its own products, and could benefit from additional data from Peloton users.