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.