After enjoying a peak of isolation during the pandemic, Peloton is now out of control. Product pcalls, pfalling stock prices, a sharp drop in demand and the dangerous appearance of his motorcycle not in one, but two hit TV shows have wiped roughly $ 40 billion of its market value last year.
Now, corporations are reportedly lining up to compete for the obsessed exercise equipment manufacturer, and Amazon is the last of several “potential suitors” to throw his hat in the ring. Wall Street Journal he reported on Friday.
According to people familiar with the matter, Amazon has talked to advisors about a potential acquisition. Additionally, It’s Nike evaluation of the idea of making an offer, Financial Times reports, although these considerations are in the preliminary stages and she has not yet spoken to Peloton. Several experts came Apple as possible buyer for Peloton, but also that speculation remains.
Peloton has not started a formal sales process at this time, but there is great interest from foreigners on the acquisition of company, a said a person familiar with the conversations CNBC. His stock prices increased by about 30% on Friday after the news broke so that Amazon could watch it.
Nike and Amazon did not immediately return Gizmod’s request for comment. We will update this article with their response.
It is not immediately clear how Amazon or Nike could embed Peloton technology or user base in its proper business models. Still, a stronger argument can be given for the e-commerce giant, as the Journal notes. For one thing, Amazon’s logistics arm would to be a serious boon in the midst of Peloton’s ongoing supply chain problems. Not to mention that Amazon has a history of great investment in health and wellness industry: It already is own line of fitness bands, Hello Band launched 2020 and Halo View which debuted in December, and picked up Whole foods for more than $ 13 billion in 2017
Peloton the existing subscription service could potentially fit in with Amazon’s Prime membership program, something Amazon did rather with its previous acquisitions to pile up incentives for customers to sign up.
If Amazon goes on sale, Peloton’s offer would become one of the most expensive hardware in its catalog. After Peloton walked increase shipping costs for part of your equipmentment earlier this year, the all in the price its original stationary bicycle now stands on $ 1745 while their own treadmill retail for $ 2845.