Amazon, Nike and other bidders are supposed to circle the Peloton
After enjoying a lockdown-driven peak during the pandemic, the Peloton is now spins out of control. Product rringer, phigh stock prices, a sharp drop in demand and the bicycle’s dangerous parts in not one, but two primetime TV series have coarsely dried $ 4NOK 0 billion from the market value in the last year.
Now it is alleged that companies are queuing up to bid on the beleagured manufacturer of fitness equipment, with Amazon as the latest among several “potential suitors” to throw the hat in the ring, Wall Street Journal reported Friday.
According to people familiar with the matter who spoke to the outlet, Amazon has spoken to advisers about a potential acquisition. In addition, Nike is consider the idea of make one offer, Financial Times reports, although these assessments are in the initial stages and it has not yet spoken to the Peloton. Several experts have moved apple as possible buys for Peloton, but so too remains speculation.
Peloton has not yet initiated a formal sales process, but there has been great interest from outsiders to acquire compsomeone to person familiar with the conversations told CNBC. It is Share prices shot up by around 30% Friday after the news came that Amazon might be looking at it.
Nike and Amazon did not immediately return Gizmodo’s request for comment. We update this article with their answers.
It is not immediately clear how Amazon or Nike maybe incorporate Peloton’s technology or user base into their respective business models. However, a stronger argument can be made for the e-commerce giant, as noted by the journal. For one thing, Amazon’s logistics arm wanted be a serious blessing in the midst of Peloton’s ongoing supply chain problems. Not to mention Amazon has a history of investing heavily in health and wellness industry: It already has their own series of training bands, The Halo Band launched in 2020 and Halo View which debuted in December, and scooped up Whole Foods for more than $ 13 billion in 2017.
Peloton sin existing subscription service could potentially also be included with Amazon’s Prime membership program, somewhat Amazon has done before with their previous acquisitions to pile on Incentives for buyers to sign up.
If Amazon goes through the sale, Peloton’s offerings will be some of the most expensive hardware in the catalog. After the Peloton left up delivery fees for some of the equipmentmeant earlier this year, the all in price of its original stationary bike is now on $ 1745 while it is treadmill sells for $ 2845.
