Peloton draws interest from potential suitors including Amazon

The maker of stationary bikes faces pressure from activist investor as share price sags

Peloton Interactive Inc. is drawing interest from potential suitors including Amazon.com Inc., according to people familiar with the matter, as the stationary-bike maker’s stock slumps and an activist urges it to explore a sale.

Peloton

Sources say potential suitors, including Amazon, are showing interest in Peloton  (Peloton)

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Amazon has been speaking to advisers about a potential deal, some of the people said. There’s no guarantee the e-commerce giant will follow through with an offer or that Peloton, which is working with its own advisers, would be receptive.

Amazon

Las Vegas - Circa July 2017: Amazon.com Fulfillment Center. Amazon is the Largest Internet-Based Retailer in the United States (iStock / iStock)

Ticker Security Last Change Change %
AMZN AMAZON.COM INC. 2,135.50 +53.50 +2.57%

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Other potential suitors are circling, these people said, but no deal is imminent and there may not be one at all.

Should there be a transaction, it could be significant, given Peloton’s market value of around $8 billion—down sharply from its high around a year ago of some $50 billion.

A logo sign outside of a Peloton retail store in Bethesda, Maryland on April 22, 2020.  (Kristoffer Tripplaar/Sipa/Peloton.com)

Ticker Security Last Change Change %
PTON PELOTON INTERACTIVE INC. 13.05 +0.53 +4.23%

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While Peloton was once a pandemic darling as homebound customers ordered its pricey exercise equipment that pairs with virtual classes, its stock closed Friday at $24.60, below its September 2019 IPO price of $29, following a slowdown in its once-torrid growth.