CNBC is reporting that there are multiple private equity firms who are considering a buyout of Peloton.
The reports indicate that at least one firm has held formal talks with Peloton that may take the company private.
In addition, there are rumored to be other private equity firms considering an acquisition – although it’s not clear at this time if Peloton has had formal discussions with these other firms.
The name of the private equity firm who has actually held discussions with Peloton about the takeover was not included in the report.
These reports have led to Peloton’s stock (PTON) going up around 20% in pre-market trading.
Part of the discussions have centered around how to lower Peloton’s operating expenses – which would make it a better target for acquisition. Just last week, Peloton announced a large restructuring plan, which involved 400 employees being laid off, and Barry McCarthy leaving as CEO.
A Peloton spokesperson told CNBC “We do not comment on speculation or rumors”
Peloton also has a large amount of debt coming to maturity soon, although the company shared in the latest earnings call they are working towards refinancing some, or all, of that debt.
The reports of a possible private equity firm acquiring Peloton, and taking it private, come after Peloton just shared it achieved becoming free cash flow positive for the first time in 13 quarters.
You can read the full report from CNBC here.
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