Peloton Interactive Inc is evaluating interest from potential suitors after a plunge in shares of the home fitness company made it a takeover target, people familiar with the matter said.
The New York-based company is working with an adviser to explore options, the sources said, asking not to be identified because discussions are private.
The takeover interest is exploratory and might not lead to a transaction, they said.
Amazon.com Inc has been speaking to advisers about a potential deal, the Wall Street Journal reported on Friday.
Nike Inc is also considering a separate bid for Peloton, the Financial Times said.
Both publications cited people familiar with the matter.
Shares of the indoor bike maker surged as much as 43 percent in extended trading on Friday after the report.
Peloton’s stock has fallen more than 80 percent from a high one year ago as the gradual easing of pandemic restrictions fueled concern that growth would slow. The company is valued at just over US$8 billion based on Friday’s official market close of US$24.60, below its September 2019 initial public offering price of US$29.
There is no guarantee that Amazon could follow through with an offer, and other potential suitors are circling, the Wall Street Journal reported, adding that no deal is imminent.
Peloton sales surged during the COVID-19 pandemic as people at home during lockdowns turned to its fitness bikes and online classes for exercise. The stock lost some of its luster with the prospect of more people returning to the office.
Activist investor Blackwells Capital LLC last month issued a letter suggesting that the company fire cofounder and CEO John Foley and pursue a sale.
Blackwells said in the letter that potential buyers could include Apple Inc, Walt Disney Co and Nike.
Amazon’s interest could be linked to its effort to gain a greater role in healthcare.
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