According to CNBC’s report on Tuesday, several private equity firms are considering a potential buyout of Peloton as the connected fitness company aims to restructure its debt and revive growth following 13 consecutive quarters of losses.
Following this news, shares of the fitness equipment manufacturer surged by 12% to $3.98.
Peloton, headquartered in New York, has engaged in discussions with at least one firm in recent months regarding the possibility of going private, as per sources familiar with the matter cited in the report.
When contacted for comment on the report, a spokesperson for Peloton stated, “We do not comment on speculation or rumors.”
Last week, Peloton CEO Barry McCarthy resigned, and the company revealed plans for job cuts as part of cost reduction efforts after disappointing financial results.
Despite implementing price reductions, Peloton experienced diminishing demand for its stationary bikes and treadmills, resulting in lower-than-anticipated revenue for the third quarter and a downward adjustment to its full-year forecast.
The report also mentioned that multiple private equity firms have expressed interest in Peloton as a potential acquisition target, although it remains unclear if formal discussions have taken place.
