Amazon and Nike are reportedly considering buying Peloton - MrLiambi's blog

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Monday, 7 February 2022

Amazon and Nike are reportedly considering buying Peloton

Amazon has been consulting advisors about a potential purchase of Peloton, according to The Wall Street Journal. 

Nike, too, is considering the purchase according to a report from The Financial Times.

Neither company has held meetings with Peloton yet and time will tell if either will end up making an offer.

There have also been rumours swelling of Apple eyeing up the fitness brand, though this seems to be largely speculation.

Peloton saw great success during the early pandemic, while gyms closed due to lockdowns, the home fitness market boomed.

In January 2021, Peloton achieved a market value of $50 billion, now, however, the brand is worth just $8 billion.

CNBC reported that Peloton had paused production of its Bike and Tread products last month, citing lower demand as the cause.

There are many factors at play affecting the demand, including more competitors hitting the scene, as well as the reopening of gyms in many regions.

Peloton CEO John Foley denied that it had halted production, but in a letter to employees he stated that it was "resetting production levels for sustainable growth."

While it's not clear how Nike or Amazon would plan to integrate the Peloton brand, there's an easy argument to made for Amazon.

The buyout would certainly help alleviate any supply chain or delivery time issues that Peloton faces.

A Peloton subscription bundled into Amazon Prime would be a massively attractive proposition to consumers and is something we've seen with previous Amazon acquisitions.

Peloton has not yet hinted that it is looking for a buyer but we'll be keeping an ear to the ground as things develop.



Source : https://www.pocket-lint.com/gadgets/news/peloton/159949-amazon-and-nike-are-reportedly-considering-buying-peloton

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