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The New York-based company is working with an adviser after a plunge in the shares made it a takeover target, according to people familiar with the matter, who asked not to be identified because discussions are private. The takeover interest is exploratory and may not lead to a transaction, they said.
The stock rose 27% in early premarket trading in New York.
Peloton’s stock has fallen more than 80% from the high a year ago as the gradual easing of pandemic restrictions fueled concern that growth would slow. It’s currently valued at just over $8 billion, based on Friday’s official market close of $24.60 a share — below its September 2019 initial public offering price of $29 a share.
The stock could see more gains at the New York open due to high short interest. A 12% short position on its free float could mean short sellers would scramble to cover their positions, fueling shares further higher.
Activist investor Blackwells Capital LLC last month issued a letter demanding the company fire co-founder and Chief Executive Officer John Foley and pursue a sale. Blackwells said in the letter that potential buyers could include Apple Inc (NASDAQ:AAPL)., Walt Disney (NYSE:DIS) Co., and Nike .
Amazon.com Inc (NASDAQ:AMZN). has been speaking to advisers about a potential deal, the Wall Street Journal reported on Friday. Nike Inc (NYSE:NKE). is also considering a separate bid for Peloton, the Financial Times said. Neither Nike nor Amazon have held direct talks with Peloton, the FT reported.
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