Peloton reportedly looking to sell up to 20% stake amid struggle

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In February, Peloton CEO John Foley resigned as a connected fitness pioneer cut 2,800 jobs. No one could say that the news was unexpected. The firm was going through dramatic upheaval after skyrocketing from sales during the pandemic and then plummeting back to Earth. Add to that a massive product recall in 2021 and you have some tough years for the CEO.

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But even with former Spotify CFO Barry McCarthy taking over, it looks like the company is out of the woods.

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“This appointment is the culmination of a months-long succession plan that I have been working on with our board of directors, and we are thrilled to have found in Barry the perfect leader for the next head of Peloton,” Foley said at the conference. time. “I look forward to working with him and invite you to welcome him with open arms.”

BUT new report from The Wall Street Journal says Pelton is actively pursuing investors to buy 15 to 20% of the company’s shares in an attempt to remedy the situation. The deal could bring in much-needed cash as Peloton struggles to regain ground as gyms reopen and competition intensifies. An investment from the right firm can also bring back confidence that the company is back on track. The move will definitely be less dramatic than previous reports that the company is looking to sell directly, courting a deep-pocketed buyer like Amazon.

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However, it seems plausible that Peloton’s new management is trying to improve the company’s position to help recapture some value ahead of the sale. Weeks before leaving the company Jason Aintaby of Blackwells Capital called both for Foley to be fired and for the company to consider selling.

We have reached out to Peloton for comment.


Credit: techcrunch.com /

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