E-commerce and cloud big Amazon has been consulting its advisers about the potential for buying Peloton, in keeping with The Wall Street Journal. And it is probably not the one greater firm that is eyeing the train tools maker: The Financial Times says Nike is considering of buying it, as effectively. Neither firm has held talks with Peloton but, they usually could find yourself not making a proposal in any respect.
Peloton grew to become a success in the beginning of the pandemic, when folks have been searching for health options after their gyms closed resulting from lockdowns. In reality, it reached a market worth of $50 billion in January 2021 — a far cry from its present $8 billion valuation. CNBC reported in January that the corporate had halted its Bike and Tread manufacturing amid slowing demand attributable to a number of components, together with stiffer competitors. Company CEO John Foley later denied that Peloton was pausing manufacturing in a letter to workers, however he admitted that it is “resetting [its] production levels for sustainable growth.”
Just a few days after that report got here out, BuzzFeed News revealed a narrative about a number of employees claiming that the corporate owes them cash over unpaid labor. The employees are accusing Peloton of not paying them for extra time and work completed throughout breaks, in addition to of not reimbursing them for firm bills.
If Amazon actually is considering of buying Peloton, it may use the corporate to develop its well being and wellness choices and make it simpler for purchasers to get their fingers on certainly one of its bikes or treadmills. It definitely has the capability to make sure supply delays, like what occurred to Peloton final yr, do not occur once more. As The Journal notes, an acquisition would additionally give Amazon entry to customers’ information, which might be helpful for its future well being and wellness initiatives.
Peloton hasn’t dropped any trace that it is searching for a brand new proprietor, however activist investor Blackwells Capital is looking for Foley to be ousted and for the corporate to begin discovering a possible purchaser. Blackwells accused Foley of constructing choices that price the corporate $40 billion, together with deceptive traders about sure info and hiring his spouse in an government position.
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