Peloton has been on the ride of its life over the past few months. In late January, after declining nearly 24% in one day, Peloton is pedaling toward a (kind of?) recovery — rumors of a possible Peloton acquisition sent $PTON stock soaring 21% today.
Rumor has it that companies like Amazon, Apple, and Nike all have an interest in purchasing Peloton, with some analysts claiming Apple may be “aggressively involved” in talks with the fitness brand. The Financial Times named Nike a possible buyer, and the WSJ reported on Amazon’s potential talks with Peloton. Amazon’s interest may stem from the company’s ability to add Peloton fitness subscriptions to Prime.
One of Peloton’s stakeholders, Blackwells Capital, encouraged Peloton to consider a sale. Those familiar with the matter say Peloton CEO John Foley will probably not sell (Foley and insiders have 80% voting control) without a persistent stock selloff. That being said, Peloton’s market value currently sits at $8 billion, down $42 billion from its $50 billion valuation a year ago. 😬
Some analysts are questioning the financial soundness of a Peloton sale. Simeon Siegel of BMO Capital Markets commented “A company is worth what someone’s willing to pay for it. If a mega-cap decides to pay up for Peloton, that’s all that matters. However, until that happens, we question whether it’d make sense.” We’ll be keeping an eye on the Peloton drama for further updates. 👀
$PTON is down -0.30% in afterhours.