Peloton Shares Soar Over Speculation Of Possible Takeover

Peloton Interactive Inc PTON is exploring takeover options with an adviser post a plunge in the shares, Bloomberg reports.
Peloton’s stock has fallen over 80% from the high a year ago as the gradual easing of pandemic restrictions fueled concern that growth would slow.
In January, activist investor Blackwells Capital LLC demanded that the company fire co-founder and CEO John Foley pursue a sale.
Blackwells said that potential buyers could include Apple Inc AAPL, The Walt Disney Co DIS, and Nike Inc NKE.
Amazon.com Inc AMZN and Nike are exploring takeover options too.
Linking up with Peloton would give Amazon or another party access to its millions of well-heeled users and their data and a significant boost in the health and wellness technology market, the Wall Street Journal reports.
Amazon’s existing businesses, such as its fleet-and-logistics arm, could help the bike company address supply-chain issues.
Peloton can bundle subscriptions with Amazon Prime, which offers users waived shipping costs, streaming services, and more for a monthly or annual fee.
Peloton is worth just over $8 billion, based on Friday’s official market close of $24.60 a share below its September 2019 initial public offering price of $29 a share.
Price Action: PTON shares traded higher by 24% at $30.50 in the premarket session on the last check Monday.