Amazon and Nike eye Peloton buyout

The news of a potential buyout has already spurred a 22.6% uplift on Peloton shares.

The business has suffered multiple public relations hits in recent months, including the storylines of two TV shows – And Just Like That... and Billions – featuring deaths by a Peloton. Mr Big’s death on the Sex and the City reboot caused Peloton’s stocks to fall by 11%.

Prior to that it had battled negative PR after a mass product recall sparked by the death of a child and over 70 reported injuries.

The pandemic accelerated Peloton’s rapid rise, but the business has also struggled to stay on top as lockdowns have eased globally. In the face of dwindling sales, Peloton slashed the price of its bike by 20% and halted the production of new machines.

Losing more than 80% of its value in just one year, Peloton investors have already called for the business to be put on the market and for its chief executive officer John Foley to be ousted. In a letter to the board of directors, Blackwell Capital claimed it had “grave concerns about the performance and direction of the company, and the ongoing failures of its leadership team.”

Its investors said its customer base would be “extremely attractive to any number of technology, streaming, metaverse and sportswear companies,” listing Apple, Disney, Sony and Nike as examples.

Tech analysts Wedbush published a report claiming Apple would be the most likely new owner, reflecting the tech giant’s push into health and fitness.

Peloton’s chief marketing officer Dara Treseder previously told The Drum that marketing the bike as accessible to everyone could help navigate the brand out of choppy waters.