Reuters reports that the online retailing giant Amazon is considering making an offer to purchase the bicycle company Peloton. The company that provides online training and manufactures exercise bikes has been having financial difficulties as of late and is searching for a more secure future. It has been stated that Nike is also considering participating in the transaction.
The other day, we published an article about the most recent technology that Peloton has developed, a Bluetooth heart rate monitor that can be worn on the forearm. The company has prior experience with heart rate monitors, as it has previously distributed a chest strap model.
The new armband from Peloton is more comfortable to wear and features a series of indicator LEDs that show the zone in which your heart rate is now located as well as other information. On the other hand, it costs more than twice as much as the chest strap does and does not have ANT+ connectivity. In addition, there are alternatives provided by third parties that are more cost-effective while performing essentially the same functions.
The heart rate armband is not exactly the type of news that will capture people’s attention. On the other hand, additional fascinating breakthroughs could be right around the bend.
Peloton has not had an easy ride up until this point
Since the beginning of the COVID-19 conflict, Peloton has been going through some hard patches in its history. During the early phases of the epidemic, it failed to accurately predict the demand level. Subsequently, it overestimated it, resulting in a large quantity of unused equipment being stored in warehouses. Then there was the coverage in the fairly unflattering television series, which we won’t go into detail about here. According to recent reports, the company is currently considering laying off employees and pausing production of its many fitness bike models.
Because of all of this turmoil, the share price of Peloton has been going through something of a rollercoaster ride. On the other hand, the most recent movement is upward—about a thirty percent upward advance! However, this still places its market capitalization in the early years of 2021 substantially behind its all-time high of $52 billion. Peloton’s market capitalization is expected to be close to $10 billion when trading resumes on Monday if recent increases are maintained. This takes into account the most recent gains.
Both Amazon and Nike have expressed interest in making acquisitions
Following close on the heels of a report published by the Reuters news agency is the most recent spike in share prices. Consequently, it became clear that a possible acquisition of Peloton by Amazon was on the horizon.
Their sources have informed them that the massive internet retailer is taking its plans very seriously. Such is the case that consultation with advisers is currently taking place over how and if to proceed. According to the sources, Peloton has not yet made a decision regarding whether or not a takeover should be in its future. According to reports, it is weighing all of its available choices.
Amazon is not the only company that is considering making an offer. In point of fact, there are multiple possible purchasers. The Financial Times cites the athletic apparel manufacturer Nike as an example of one of these. According to reports, they are also considering submitting an offer.
At this time, Peloton’s operations are continuing as normal. However, you shouldn’t be too astonished if there is some important news regarding acquisitions in the days and weeks ahead.
Peloton and Nike did not provide an instant response to the requests for comments made by the news media. Amazon is another company that has chosen not to comment on the rumors and speculation.