Peloton Interactive is in the process of considering the sale of a sizeable minority stake in the company as it attempts a bold turnaround of its performance and reversal of its share price decline.
The connected fitness firm is being courted by potential investors, including industry players and private equity firms that could potentially buy a stake of around 15% to 20%, said sources close to the company.
Although discussions are still in the early stages, Peloton (ticker: PTON) expects to find a willing buyer or agree to a deal. Among the key potential buyers is Amazon (ticker: AMZN), which has explored the potential of a full takeover of the company.
Of all its suitors, Apple (ticker: AAPL) would probably be a better fit than Amazon or Nike (ticker: NKE), according to UBS analyst Arpine Kocharyan, who commented that Peloton could help drive Apple’s services segment and assist with customer retention.
Peloton was among the few global companies that celebrated during the Covid- 19 pandemic with extended lockdowns and stay-at-home directives. But the company’s shares have dropped by almost 80% since the lockdown restrictions were eased and gyms have re-opened. Shares of Peloton were down 1.41% in Friday’s premarket trading.