An SEC filing reveals that Peloton founder and former CEO John Foley sold $50 million in stock to MSD Partners, a firm that is linked to billionaire Michael Dell. Dell is the founder, chairman, and CEO of Dell Technologies.
The sale involved 1.92 million shares to MSD Partners, which is run by former Goldman Sachs executive Gregg Lemkau and oversees more than $20 billion dollars from Dell and other investors. Bloomberg reports:
Lemkau said in a statement that Peloton “is an exceptional brand and MSD Partners is pleased to have this opportunity to back Barry McCarthy and the Peloton team as they position the business for long-term growth.”
Foley sold the stock at $26 per share. According to The Financial Times, this is the first time Foley has sold shares below $29 (Peloton’s IPO price back in 2019). Peloton has lost approximately 80% of its market value over the past year after hitting pandemic highs nearing $170 per share.
According to The Wall Street Journal, Foley also sold nearly $100 million worth of stock in 2021. However, even in light of this most recent sale, he still retains enough shares to maintain effective voting control of the company.
Peloton has provided a brief comment on the most recent $50 million sale to MSD Partners, explaining: “This decision to exercise some stock options and sell those underlying shares in a private sale to MSD Partners, was John’s decision, based on his own financial planning.”
John Foley stepped down as Peloton’s CEO last month to make way for Barry McCarthy. In recent interviews, McCarthy has stressed that he is focused on long-term growth rather than a potential acquisition.
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