Amazon and Nike: what is Peloton's choice?
Peloton (PMCCF) Interactive Inc has drawn interest from potential buyers including e-commerce giant Amazon (AMZN), according to a person familiar with the matter, as the exercise bike maker struggles to maintain pandemic-fueled growth.
Shares of Peloton surged 30% in extended trading on the news, which comes days after activist investor Blackwells Capital urged the company's board to put it up for sale.
Peloton's sales boomed during Covid-19 lockdowns, with many snapping up home fitness equipment. But its fortunes began to fade as vaccinations increased, gyms reopened and rivals offered competitive products.
Amazon is exploring an offer for Peloton and is speaking with advisers about whether and how to proceed, a source said. Peloton has not yet decided whether it will explore a sale, according to the source.
Meanwhile, the Financial Times reported late on Friday that sportswear company Nike (NKE) is also evaluating a bid for Peloton, citing people briefed on the matter, who said the considerations are preliminary and Nike has not held talks with Peloton.
Peloton and Nike did not immediately respond to a Reuters request for comment, while Amazon declined to comment.