- Peloton (NASDAQ: PTON) is reportedly in talks to sell a minority stake of up to 20% to raise funds. These are the details.
Peloton (NASDAQ: PTON) is reportedly in talks to sell a minority stake of up to 20% to raise funds, according to The Wall Street Journal. The discussions are currently in the early stage and there are no guarantees that a deal will be reached.
The potential investors may include private equity firms and other industry players. A major industry player like Amazon could also be a potential investor. Amazon was previously rumored to be a party that was interested in fully buying out Peloton in the past.
During the pandemic, Peloton saw a surge in growth due to the demand for home exercise equipment during lockdowns. But that growth significantly slowed down as the lockdowns eased and more people were returning to gyms. The valuation of Peloton went from a valuation of about $50 billion in early 2021 to under $6 bill this week.
A few months ago, Peloton said it would be cutting 2,800 jobs and co-founder John Foley was replaced as CEO and the company dropped a plan to build a $400 million plant in Ohio. Former Spotify and Netflix CFO Barry McCarthy had succeeded Foley.
