The Wall Street Journal is reporting that Peloton is seeking a sizable new investor as their stock price continues to fall:
The fitness company is targeting potential investors including industry players and private-equity firms that could take a stake of around 15% to 20%, according to people familiar with the matter. Discussions are at an early stage and there are no guarantees the New York-based company will find a taker or agree to a deal.
Peloton’s stock price is down 9% today, the latest in a continuous downward trend [It’s worth noting it was a bad day for the entire market today, however]. The stock price has dropped another 5% or so in after hours trading since this news broke.
Overall Peloton’s value has decreased from $50 billion last year to $5.6 billion this week. An influx of cash could greatly help as the company looks to find its footing.
This has been a tumultuous past six months for the company, most notably in February when Peloton laid off 2,800 employees; scrapped plans for the Peloton Output Park; and replaced founder and former CEO John Foley.
Some have called for Peloton to explore an acquisition, including activist investor Blackwells Capital. Though there have been reports that companies such as Nike and Amazon may be interested, new CEO Barry McCarthy has repeatedly stressed that he is focused on long-term growth rather than a potential acquisition.
You can read the complete article from the Wall Street Journal here.
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