Amazon and Nike are reportedly exploring separate bids for Peloton, the beleaguered leader in internet-connected bikes and treadmills. Peloton’s shares traded up more than 30 percent in after-hours trading.
The Wall Street Journal first reported Amazon’s interest, followed by the Financial Times reporting on Nike’s interest. The WSJ reported that other potential suitors have shown interest though no deals are said to be imminent.
The reports come after activist investor Blackwells Capital, on January 24, issued a letter to Peloton demanding the company fire Co-founder and CEO John Foley and explore a sale. Blackwells’ letter speculated that Apple, Walt Disney and Nike could be potential buyers.
Blackwells’ letter follows the plunge in Peloton shares following the recent slowdown in demand for its at-home fitness bikes and treadmills amidst the reopening of gyms nationwide and demand for its equipment surge during earlier phases of the pandemic.
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Photo courtesy Peloton
