Reports Say Nike and Amazon are Exploring Peloton

According to sources, Amazon and Nike are interested in partnering with Peloton, an exercise business. During the epidemic, Peloton’s exercise cycles and treadmills sold at an all-time high, attracting them. Suitors have not been deterred by the company’s return to market following the lockout, which has reduced its value to less than a sixth of its high $50 billion estimate. There have also been recent public relations disasters with Peloton machines and TV actors having heart attacks. Amazon will not confirm or deny whether it was exploring a bid for the US workout equipment company. When the rumour was first reported in the Wall Street Journal on Friday, the company’s stock soared more than 30% in after-hours trade.

The once-popular stock has seen its value plummet in recent months, losing more than 80% of its value in the previous year. Demand for Peloton’s training equipment and remote workout courses skyrocketed when the Covid epidemic forced gyms to close in 2020, sending its stock price soaring. The demand for its bikes and treadmills has fallen as lockdowns have relaxed. In the same month, the US Departments of Justice and Homeland Security announced that they were looking into the corporation after a kid was died after being pulled beneath one of their treadmills, and other customers had reported injuries. Peloton cautioned investors in November that revenue will drop in the coming year.

Last month, investment firm Blackwells Capital asked for John Foley, Peloton’s chief executive, to be fired and the company to be placed up for sale. In a letter to Peloton’s board, Blackwells said that Peloton and its user base are “very attractive” to firms like Nike, Apple, Disney, and Sony, who are aiming to expand their position in the home, health and wellness, and media industries. Other bids, according to Wedbush Securities analysts, are also expected to emerge. “We’d be surprised if Apple isn’t actively involved in this potential sale process,” they added, adding that Disney could also be interested in the fitness business.

“We expect a number of technology and consumer brand heavyweights will be circling for a potential deal, with activists pushing for a sale as well.” Peloton gained news recently after characters in two television series, the Sex and the City remake And Just Like That and Billions, experienced heart attacks while riding the company’s bikes. On Tuesday, the corporation is expected to release its second-quarter profits.