Peloton Interactive Inc (NASDAQ: PTON) is up 20% on Tuesday following a report that private equity firms have shown interest in acquiring the connected fitness company.
$PTON has formally engaged with one private equity firm
Anonymous sources told CNBC this morning that the exercise equipment manufacturer has held formal discussions with at least one firm.
A bunch of others are interested in taking over $PTON as well but it’s unclear if they have formally engaged with the Nasdaq-listed firm yet, they added.
A representative of Peloton Interactive refrained from commenting on the report today citing “we do not comment on speculation or rumours”.
The $1.3 billion company based out of New York, United States once had a market cap of nearly $50 billion. Peloton stock is now down about 40% versus its year-to-date high.
Peloton has been in loss for over three years
The news arrives at a time when $PTON is focused on refinancing its debt.
Peloton Interactive has remained in loss for thirteen quarters straight – the most recent of which it reported last week. It did, however, announce a restructuring plan with its Q3 earnings report that it’s convinced will help lower its annual run-rate expenses by over $200 million by the end of its next fiscal year.
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It’s not yet a given that one of the private equity firms will buyout Peloton. It could still opt to continue as a listed company, the sources added on Tuesday.
Note that the connected fitness company is currently looking for a new chief executive after Barry McCarthy announced plans of stepping down on May 2nd. $PTON expects its revenue to fall between $2.68 billion and $2.70 billion in the fiscal 2024.
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