A number of big-name suitors are believed to be looking at making a bid for at-home fitness giant Peloton.
According to the Wall Street Journal, those mulling over a potential bid include online retail behemoth Amazon, with sports equipment brand Nike also believed to looking at an offer.
The value of Peloton's shares sky-rocketed during the COVID-19 pandemic, as people flocked to online and digital fitness due to pandemic lockdowns.
In December 2020, shares were trading at US$163 and the company was valued at around US$42bn.
In the same month, Peloton acquired commercial fitness specialist Precor – a move designed to meet increased demand for its products, which had led to challenges with supply.
During 2021 and into 2022, however, a mixture of people returning to the gym – following the lifting of pandemic restrictions – and an increasingly competitive digital fitness market has seen Peloton struggle.
In August 2021, it lowered the price of its original Peloton Bike across all markets to US$1,495 (€1,495, £1,350 GBP) and reported fourth qurter losses of US$313.2m – against profits of US$89.1m the year before.
Shares in the company have also fallen sharply and are currently trading at just US$24.60.
In addition, one of its investors – Blackwells Capital – has called on Peloton’s board to remove the company’s chief executive, John Foley, and put the company up for sale.
