Nike and Amazon dispute an exercise bike that became a fever in the pandemic

Peloton Interactive has drawn interest from potential buyers, including Amazon, according to a person familiar with the matter, with the stationary bike maker struggling to keep growth fueled by the pandemic.

Peloton shares rose 30% in the aftermarket on Friday, after activist investor Blackwells Capital urged the company’s board to put it up for sale.

Amazon is considering making a bid for Peloton and is in talks with advisers about how to proceed, one source said. Peloton has not yet decided whether to attempt a sale, he added.

The Financial Times reported earlier on Friday that Nike is also considering a bid for Peloton, citing people familiar with the matter who said the considerations were preliminary and that Nike had not spoken with Peloton.

Peloton and Nike did not immediately respond to a request for comment from Reuters, while Amazon declined to comment.

Peloton’s sales have soared during the pandemic, with many buying gym equipment at home. But his luck changed as vaccinations advanced, gyms reopened and rivals offered competitive products.

To make matters worse, Peloton had an awkward participation in the series “And Just Like That”, the revamped version of “Sex and the City”. In episode two, the bike appears lying in a hallway between the master bathroom and the closet, abandoned and gathering dust. To learn more about the episode, with spoilers, click here.

In November, the company hinted that demand for its stationary bikes and treadmills was declining faster than expected, and its market value then shrunk to about $8 billion after peaking at nearly $52 billion. at the beginning of 2021.

If the shares maintain their Friday price, Peloton could reach a market value of 10 billion dollars.

Last week, Blackwells Capital called on Peloton’s board to remove chairman John Foley immediately, accusing him of deals that set high fixed costs and mislead investors about the need to raise capital.

The investment firm, run by Jason Aintabi, also urged the board to put the company up for sale to a buyer like Walt Disney, Apple, Sony or Nike, Reuters reported on Sunday.

Peloton has tried to cushion the blow to its growth by cutting the price of its popular bike and increasing its advertising spend, but growth remains stagnant.

While many have been frustrated with Peloton due to a stock slump, analysts also note that the company can be a tough buy target because of its two classes of shares, allowing insiders to control it.

Rithika Krishna, Tiyashi Datta, Nivedita Balu, Shivam Patel and Greg Roumeliotis