Peloton has drawn interest from potential suitors for a buy, including Amazon, The Wall Street Journal (WSJ) reported Friday (Feb. 4).
The company’s stock has been down, and an activist investor has been saying a sale could be a good idea.
According to sources who spoke to the WSJ, Amazon has been in talks about a possible deal, although there is no guarantee that the eCommerce giant plans to follow through. There are other suitors expressing interest, though no deal has been placed on the table formally, and Peloton itself hasn’t given any indicator it plans to sell.
Around a year ago, the exercise company had a value of around $50 billion, with the windfall driven by the pandemic and stay-at-home measures in 2020. Since then, the company’s market value has fallen drastically, hitting around $8 billion.
Per the report, Peloton linking with Amazon — or another company — would also mean millions of users’ data would be sold, which could create a shift in the health and wellness tech market.
There are also numerous connections already between Amazon and Peloton’s businesses, including the fleet and logistics arm from Amazon which could help the bike company work on supply chain issues. Additionally, the report theorizes that a Peloton subscription might be able to be bundled with Amazon Prime, which offers free shipping, a streaming service and more.
In addition, Amazon has already been dabbling in connected health with the rollout of its Halo Health and Wellness tracker.
PYMNTS wrote that Peloton has seen some issues as of late, including lawsuits and a product recall, along with recent reports of a reorganization that could come with layoffs and production cuts to its core product.
Read more: Plagued by Problems, Peloton’s Latest Crisis Clouds Broader Health and Fitness Trend
The company lost around 25% of its body weight, or $2 billion, in just one day of a selloff.
PYMNTS posed the question if these things amount to just growing pains for a company that went public just 27 months ago, or if there is a declining demand for home fitness as the world tries to reopen.
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