According to Reuters, e-commerce giant Amazon is eyeing the acquisition of Peloton. The online training provider and exercise bike manufacturer has been struggling of late and is looking for a more stable future. Nike is also said to be interested in a deal.
We reported, the other day, on Peloton’s latest gadget – a Bluetooth heart rate monitor that is designed to be worn on the forearm. The company is no stranger to heart rate monitors having already released a chest strap.
Peloton’s new arm band is easier to wear and has a set of indicator LEDs that show your heart rate zone and other information. However, it is more than twice as expensive than the chest strap and lacks ANT+ connectivity. Plus there are third party options that are cheaper and do basically much the same thing.
The heart rate arm band is not exactly headline grabbing news. But more interesting developments might be just around the corner.
It has not been plain sailing for Peloton
Peloton has gone through some turbulent times since the start of the COVID-19 crisis. It underestimated demand in the early stages of the pandemic, then overestimated it leaving lots of unsold equipment lying around in warehouses. Then there was the rather unflattering TV series coverage which we won’t go into. Reportedly the company is now looking to to lay off employees and pause the production of its fitness bike range.
Peloton’s share price has been on a bit of a rollercoaster ride due all this turbulence. However, the most recent move is up – about 30% up! But that still leaves it significantly below its $52 billion market capitalisation peak in early 2021. If gains hold when trading opens on Monday, Peloton’s market capitalisation will be around $10 billion. That’s with these most recent gains.
Amazon & Nike interested in acquisition
The most recent jump in share prices comes on the heels of a report from Reuters news agency. Which revealed there could be an imminent takeover of Peloton by Amazon.
Their sources have said the online retail giant is serious in its intentions. So much so that it is in consultation with advisers on how and whether to proceed. The sources added that Peloton has not decided yet whether its future should lie in a takeover. It is reportedly considering its options.
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Amazon is not the only party that is interested. In fact there are several potential buyers. According to the Financial Times, one of these is sportswear company Nike. Reportedly, they are also weighing a bid.
For now, it is business as usual at Peloton. But don’t be surprised if there is some big news on the acquisition front in the coming days and weeks.
Peloton and Nike did not immediately respond to requests from news media for comment. Amazon has also refused to issue a comment on the speculation.
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