Updated · May 20, 2022
Amazon and Nike Considering Bids for Peloton
Updated · Feb 21, 2022
Exercise equipment manufacturer Peloton may have attracted interest from potential suitors, including Amazon and Nike.
Amazon and Nike are exploring putting in bids for Peloton Interactive Inc., according to findings by The Wall Street Journal. Following the report, shares of the exercise brand surged up to 43% in after-hours trading.
Apparently, Amazon is undertaking consultations regarding buying the company in a bid to boost its health and wellness division. So far, there are no indications that its interest has evolved into anything tangible.
Amazon is not the only company eyeing Peloton. Sportswear giant Nike may also be interested, seemingly backtracking on its earlier commitment to focus on software.
The company enjoyed a lucrative period during the pandemic-enforced lockdowns. Demand for its exercise bikes and treadmills exploded as more people turned to them to keep fit while staying home. As a result, its market cap shot up to a $50 billion peak in January 2021 — a country mile from its current $8 billion valuation.
A return to relative normalcy and the stiffer competition saw Peloton’s stock sharply decline. Amazon, Nike, and other potential suitors may be banking on the drop in share price to buy the company.
Will Paleton Sell?
So far, there are no signs that Paleton would be receptive to an acquisition bid. The equipment maker declined to respond to comment requests from news publications.
Due to its dual-class shareholder structure, any deal may have to receive the blessing of CEO John Foley and other insiders.
Daniel is an Economics grad who fell in love with tech. His love for books and reading pushed him into picking up the pen - and keyboard. Also a data analyst, he's taking that leap into data science and machine learning. When not writing or studying, chances are that you'll catch him watching football or face-deep in an epic fantasy novel.
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