The environment keeps getting more interesting in what has already been a tumultuous start for Peloton in May.
PTON shares surged in the mid-teens on Tuesday, May 7, after CNBC reported early that several private equity firms were considering a buyout of the connected fitness company as it looks to restructure debt and return to growth.
Peloton has also held talks with at least one company in recent months as it considers going private, the CNBC report said, citing people familiar with the matter.
“We do not comment on speculation or rumors,” a Peloton spokesperson reportedly told the business news network when contacted for comment on the CNBC report.
Last week, Peloton CEO Barry McCarthy, who was seen as a key figure in the company’s survival, resigned. On the same day, Peloton announced it would cut almost 400 jobs to reduce costs after posting weak results.
With shares plummeting nearly 98 percent from their peak during the pandemic-driven trends in mid-2021, the question is: how much lower can it go? The uncertainty surrounding a potential suitor or savior adds to the intrigue of Peloton’s future.
