Peloton is recalling its treadmills — Tread and Tread+ — as a result of mounting pressure following dozens of injuries and the death of a 6-year-old.

News of the recall sent Peloton’s stock tumbling below $83 on Wednesday, an eight-month low. The stock had already dropped 22% from early April to market close on Tuesday.

The connected fitness company is offering refunds for over 130,000 Tread+ machines ($4,295), and another 1,050 Treads ($2,495). 

Peloton is rolling out software updates to prevent machines from being turned on involuntarily and offering to move treadmills to a room inaccessible to children and pets in lieu of a recall.

With a recent $100 million investment to scale up logistics and a growing number of challengers on the market, Peloton can ill afford a hit to its brand.

• A slew of competitors have received funding this year: Tonal ($250 million), Tempo ($220 million), Ergatta ($30 million), Hydrow ($25 million), Motosumo ($6 million), and LIT Method (undisclosed).
• The company is also dealing with revelations that all of its customer data is available to any member through a leak in its software API.

Peloton CEO John Foley apologized for initially brushing off warnings from the Consumer Product Safety Commission.

As Equinox welcomes the public back in, it may go public itself.

The high-end gym and owner of SoulCycle is in talks with Chamath Palihapitiya’s Social Capital SPAC about a merger that could value Equinox at over $7.5 billion, per Bloomberg.

Equinox, which launched a line of luxury hotels in 2019, closed many locations and lost around $350 million last year. It received capital from Silver Lake at a $9 billion valuation to prop it up through the pandemic.

Should the SPAC deal go through, it would include a substantial cash injection as the gym seeks to lure customers back.

SoulCycle recently launched an at-home connected bike with guaranteed delivery in 1-3 weeks, an area where Peloton struggles.

Help may also come from the federal government. The GYMS Act, which would provide grants to gyms and fitness centers, has bipartisan support and 104 cosponsors in the House of Representatives.

Palihapitiya, a former Facebook executive, is a minority owner and board member of the Golden State Warriors. He has launched six SPACs, including one that took Virgin Galactic public.

Activision Blizzard leveled up again, with 27% net revenue growth in Q1 2021.

“Call of Duty” was a key driver behind the company’s $2.28 billion net haul during the quarter, with in-game purchases for the franchise’s various PC and console versions growing 60%.

The company owns several more of the most recognizable titles in gaming, including “World of Warcraft,” “Overwatch,” “Crash Bandicoot,” “Hearthstone,” and “Candy Crush.”

Activision Blizzard has pursued a multifaceted strategy to recruit players, developers and fans into gaming and esports.

• Monthly active users across “Call of Duty” titles grew 40% year-over-year, and have tripled since 2019, reaching 150 million in Q1. Much of the Activision side’s growth came from the introduction of free-to-play and mobile options for the series.
• The company’s Blizzard segment revenue grew 7%, led by the “World of Warcraft: Shadowlands” expansion. Blizzard had 27 million monthly active users in the quarter.
• The King segment, and its 258 million monthly active users, rode the massively popular “Candy Crush” to 22% growth. King’s advertising revenue is up 70%. 

Despite the surge in gaming during the pandemic, leading to $56 billion in global console sales in 2020, Activision Blizzard laid off around 190 employees during Q1 2021.

CEO Bobby Kotick cut his base pay in half to $875,000, but could be due $200 million in bonuses, according to activist investor group CtW.

After more than a year of quiet stadiums filled with cardboard faces, sports are returning to normal — fans are back, many stadiums are at full capacity, and business is booming.

In a new $10 million campaign, Bud Light said it will pay for and give away 100,000 tickets for baseball, hockey, football, and basketball games. Fans of legal age will even get a free beer.

The promotion and others like it come as more venues announce their full-scale returns.

• Mercedes-Benz Stadium, home of the Atlanta Falcons and Atlanta United, is opening its doors on May 15 with a full capacity of 71,000. 
• Massachusetts will allow 100% capacity on Aug. 1, including at Gillette Stadium, home of the New England Patriots.
• Truist Park, home of the Atlanta Braves, plans to open on May 7 with a full capacity of 41,084.
• The Texas Rangers allowed full capacity (40,300) on Opening Day this year, the only MLB team to do so.

Fans play a massive role in the success of a team or league’s business. Without them, MLB teams lost $1 billion in revenue in 2020, for example.

In March, NBA commissioner Adam Silver said he expects full capacity at stadiums next season, and NFL commissioner Roger Goodell said the same for football.

Silver has also said that 40% of NBA revenue comes from game nights with fans in attendance.