• Loading stock data...
Sunday, July 14, 2024

Amazon, Nike Consider Bids to Buy Peloton

  • Peloton is drawing interest from potential buyers.
  • Amazon and Nike could be suitors for the at-home fitness company.
Peloton/Design: Alex Brooks

Peloton’s controversial year and underwhelming sales have made it a takeover target and the at-home fitness giant is drawing interest from potential buyers, including two giants — Amazon and Nike.

Last month, Peloton shareholder Blackwells Capital called for the removal of the company’s CEO, chairman, and co-founder John Foley over concerns about the company’s performance. Blackwells Capital also suggested that Peloton’s board of directors consider a sale.

Despite the challenges, a Peloton sale stands to be significant. Peloton has a market cap of $8.94 billion — a drastic decline from a company-high market cap of $44.38 billion in 2020. 

Now, Peloton’s business has piqued the interest of Nike and Amazon, but no deal is imminent.

Peloton’s potential sale follows a tumultuous year for the New York-based company. 

  • It reportedly lowered its projected apparel revenue for fiscal 2022 from $200 million to $150 million due to supply chain issues and other “macro factors.”
  • The company posted a net loss of $376 million in fiscal Q1 compared to a net income of $69.3 million for the same period the year prior. 
  • Shareholders have lost nearly $40 billion in wealth; Foley has pocketed more than $115 million from selling stock.

Peloton shares rose more than 30% in extended trading Friday after news of a potential sale circulated. 

Changes Coming 

Peloton recently hired McKinsey & Co. to evaluate its cost structure and potentially eliminate jobs.

The company has discussed closing 15 of its 123 retail locations and announced added delivery and setup costs, citing inflation.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Jan 7, 2024; Nashville, Tennessee, USA; Jacksonville Jaguars wide receiver Calvin Ridley (0) reacts after scoring a touchdown against the Tennessee Titans during the first half at Nissan Stadium.

Without Hard-Line Bans, Pro Athletes and Personnel Will Keep Betting on Sports

Penalties often aren’t stringent or consistent enough to deter banned behavior.
Oct 2, 2021; Miami Gardens, FL, USA; NFL commissioner Roger Goddell speaks during the Don Shula Celebration of Life at Hard Rock Stadium.

The NFL Is Confident It Can Overturn the Sunday Ticket Verdict

The league may have good reason to believe it can win.

Everything To Know About the Jaylen Brown–Nike-Olympic Beef

It starts, as it often does, with a carefully parsed emoji.
podcast thumbnail mobile
Front Office Sports Today

Warner Bros. Discovery Faces Final Decision on NBA Rights

0:00

Featured Today

NFLPA Report Cards Have Become the ‘Talk of the Locker Room’ Across..

NFLPA report cards have become the ‘talk of the locker room.’
July 7, 2024

The New College Sports Insiders Are Graphic Designers

Joe Tipton and Hayes Fawcett have become premier news-breakers on social media.
Oct 27, 2023; Sacramento, California, USA; A general of the Sacramento Kings logo on the court before the game against the Golden State Warriors at Golden 1 Center.
July 6, 2024

How Sports Went From Private Equity Punchline to Coveted Asset Class

Once an industry punchline, sports are now a coveted asset class.
July 2, 2024

Willie Mays’s Humility Was Key to His Genius

Mays took heat from all sides, and handled it his own way.

NBA and NHL Free Agency: Billions in New Deals Despite Economic Unrest

Rising revenues and salary caps are helping fuel a run of historic contracts.
June 24, 2024

Tiger’s Golf League Hits $500 Million Valuation Before First Swing

TGL will begin play in January 2025.
July 1, 2024

Bobby Bonilla Day: A Look at MLB’s Top Deferral Deals and Ohtani’s Pact

Well beyond Bobby Bonilla, many current and former MLB stars have their own lucrative deferrals.
Sponsored

TopSpin 2K25 Brings the Legends of Tennis to Your Living Room

2K sports is reviving a classic with TopSpin 2K25.
June 13, 2024

The ‘Big’ in Big 12 Could Soon Be Replaced With a Sponsor’s Name

Allstate is said to be in discussions about a deal with the Big 12.
June 13, 2024

Everything You Need to Know About the Schism Rocking Competitive Eating

The business story about hot dogs that you never knew you needed.
June 12, 2024

Saudi Arabia’s Next Big Sports Target: Boxing, With Joint Venture Worth $5B

The Public Investment Fund of Saudi Arabia is focusing on boxing as its next large-scale sports target.
June 11, 2024

Breakthrough? Tiger Says PGA Tour and LIV Golf Are Eyeing ‘End Game’

Woods called a recent meeting ‘productive.’