Peloton has ended up as garage sale browsing fodder, like most fitness equipment ends up.
According to reports, several firms—including Amazon and Nike—were considering a purchase of the home fitness company.
In general, Peloton makes an attractive takeover target because it’s profitable, boasts an extremely loyal user base, and has become much more affordable due to the recent drop in stock price (down nearly 85% from its 2020 peak). So what makes Peloton a logical purchase for Amazon or Nike?
Amazon (NASDAQ: AMZN)
Amazon might use Peloton to get a larger foothold in the wellness market, which it's already looking into with its Halo fitness bracelet. Amazon may also help Peloton's logistics by leveraging its supply chain knowledge, and maybe include a Peloton membership as part of its Prime membership.
Nike (NYSE: NKE)
Buying Peloton would be a major change for the company, from fitness technology software to hardware. However, according to Axios, the brand compatibility is there.
Other potential buyers have also been suggested, including the usual suspects Apple (NASDAQ: AAPL), Google (NASDAQ: GOOG), Netflix (NASDAQ: NFLX), Microsoft (NASDAQ: MSFT), or a private equity firm.
Still, any agreement is contingent on Peloton CEO John Foley's support. He'd need to be in a dire situation to sell the firm he co-founded in 2012.