Amazon and Nike are both reportedly considering bids to acquire exercise equipment company Peloton.
According to a report from Reuters, Amazon is exploring an offer for Peloton and consulting with advisers about whether and how to proceed. Reuters also cited a Financial Times report that said Nike was evaluating a bid for Peloton, noting that the considerations were preliminary and Nike hadn’t held talks with Peloton.
Meanwhile, Peleton reportedly hasn’t decided whether it will explore a sale, although Reuters says activist investor Blackwells Capital urged the company’s board to put Peloton up for sale. Blackwells also called for the removal of CEO John Foley, accusing him of misleading investors and criticizing him for hiring his wife as a key executive, among other issues.
The rumours swirling around a Peloton sale stem from the company’s steep drop in stock price following a pandemic-driven boom in sales and a subsequent collapse when lockdowns lifted and gyms began to re-open. Previous reports indicated Peloton temporarily halted production of its fitness products due to a drop in consumer demand. Insider previously reported Peloton planned to lay off 41 percent of its staff in sales and marketing departments.
Amazon declined to provide comment to Reuters about the Peloton report, while Nike and Peloton did not immediately respond to requests from the publication.
Other reports indicated that Apple could be poised to buy Peloton to bolster its own fitness aspirations. However, Bloomberg’s Mark Gurman, who reliably covers Apple, wrote in a recent newsletter that buying Peloton “would be an unnecessary and pricey headache for Apple.”
Image credit: Shutterstock
Source: Reuters
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