A Peloton exercise bike is seen after the ringing of the opening bell for the company’s IPO at the Nasdaq Market site in New York City, New York, U.S., September 26, 2019. REUTERS/Shannon Stapleton
Register now for FREE unlimited access to Reuters.comFeb 4 (Reuters) – Peloton Interactive Inc (PTON.O) has drawn interest from potential buyers including e-commerce giant Amazon.com Inc , according to a person familiar with the matter.
Shares of the exercise equipment maker surged 40% in extended trading on the news which comes days after activist investor Blackwells Capital urged the company’s board to put it up for sale.
The news was first reported by the Wall Street Journal on Friday. It also said Amazon has been speaking to advisers about a potential deal. (https://on.wsj.com/3AVMIf7)
Register now for FREE unlimited access to Reuters.comPeloton did not immediately respond to a Reuters request for comment, while Amazon declined to comment.
Pandemic darling Peloton has lost roughly $20 billion in market value since November, when it hinted that demand for its exercise bikes and treadmills was drying up faster than expected as COVID-19 restrictions ease and gyms re-open.
Last month, Blackwells Capital called on the board of Peloton to remove CEO John Foley immediately, accusing him of creating an atmosphere of high fixed costs and holding on to excessive inventory while also misleading investors about the need to raise capital. read more
The investment firm, run by Jason Aintabi, also urged the board to put the company up for sale to a buyer like Walt Disney Co (DIS.N), Apple Inc (AAPL.O), Sony Group (6758.T) or Nike Inc , Reuters reported on Sunday. read more
Register now for FREE unlimited access to Reuters.comReporting by Rithika Krishna, Tiyashi Datta and Nivedita Balu in Bengaluru; Editing by Devika Syamnath
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