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Multiple Companies Are Looking into a Potential Buyout of Peloton

news Feb 08, 2022

After Peloton stock struggles over the last year, there have been rumors about potential M&A deals brewing for Peloton

  • Apple, Nike, Disney, and Amazon have investigated potentially expanding their company by the acquisition of Peloton.
  • Over the last year, Peloton stock is down over 80%. With covid restrictions being loosened over the last year, Peloton stock is struggling to stay alive.
  • A potential buyout of Peloton could really turn the tables for the company.


What Does This Potential Acquisition Mean for Peloton?

A potential acquisition from major companies such as Apple or Nike could be exactly what Peloton needed. Peloton benefitted early in the pandemic when people were forced to stay home because of the global pandemic. Because of gym closures and strict restrictions, many people at home were settling for Peloton’s famous gym equipment. Over the last year or so, covid restrictions have really loosened and this has impacted Peloton tremendously as people are looking to get outside as much as they can.

Although John Cook, the peloton CEO, denied the report there has been speculation that Peloton has slowed down a lot of its production because of seasonal changes, this is a massive concern. The company has not been producing and selling as many bikes and treadmills as they were during the pandemic causing a stall in the company’s performance. It seems the company needs a new growth strategy, and a potential M&A deal is one answer to the problem.


What Does This Mean for Investors?

For investors, this is a very positive sign for Peloton stock. This is a company that has seen all types of challenges over the last year and a potential M&A deal is something that could turn the tides for the well-known exercise equipment company. The main issue for a potential acquisition of Peloton is that the current CEO and insiders have a lot of voice in the decision as they do hold a lot of the voting power. If John Cook believes he has a good grip of the company and a plan for the future, then a potential acquisition could very well not happen.

The struggles post pandemic for Peloton were expected. A lot of investors felt that after the company saw so much success in its early years of existence that they would be able to come up with a strategy to avoid these struggles. Clearly that has not been the case for Peloton and a potential buyout by one of the major companies is the reset that Peloton needs.