Connected fitness company Peloton Interactive (PTON) is seeking to sell a 20% stake to an
outside investor to help turn around its finances, according to multiple media reports.
Peloton hopes to find a big corporation or private equity firm that can help validate the business
with its investment. Peloton has been contacting potential buyers, though the sales process is at
an early stage.
The company, which makes treadmills and exercise bikes and sells subscriptions to online
fitness classes, was a highflier during the pandemic when stuck-at-home consumers scrambled
to buy its bikes and sign up for fitness classes. But demand has cooled, and management has
struggled to revive the business.
Peloton investors and analysts have been pushing the company to sell itself to a buyer such as
Amazon (AMZN) or Nike (NKE), but new CEO Barry McCarthy, who previously worked at Netflix
(NFLX), has said that an outright sale isn’t his goal.
Peloton replaced its chief executive officer and other top executives in February, only to see its
stock continue to slide. The share price, already down 80% in the past year, fell 7% in late
trading yesterday (May 5) to close at $17.01 U.S.
Peloton is scheduled to report its latest quarterly results on May 10.
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