What you need to know
- Peloton has been told that it should sell to Apple among others.
- Blackwells Capital wants Apple, Disney, or Nike to be sounded out for a buyout.
- Blackwells called for CEO John Foley to be ousted.
The troubles facing Peloton are well known with the company reportedly slashing production of its fitness devices as well as its workforce. Recent talk has Apple as a potential buyer for the company and now one investor wants that to be more than idle chat.
Peloton has reportedly received a letter from Blackwells Capital, a company that owns a stake of less than 5% of the company. Apparently ignoring that fact, Blackwells not only wants Apple to be sounded out for a potential buyout but also wants co-founder and CEO John Foley to be kicked out. Bloomberg has reportedly seen the letter itself.
Blackwells Capital LLC, which has a stake of less than 5%, has called for the departure of CEO and co-founder John Foley and wants Peloton to explore a sale of the business. Peloton could be an attractive acquisition target for larger technology or fitness firms, according to an investor letter seen by Bloomberg.
The news follows a torrid time for Peloton that has so far seen its shares fall more than 80% from their all-time high a year ago.
Whether Apple would actually be interested in picking up Peloton is open for debate, however. While the links to Apple Fitness+ are obvious, but it isn't known whether Apple has plans to expand into the kinds of live fitness coaching that Peloton has become famous for.
It is equally unclear whether Disney could be interested, but the link to Nike perhaps makes the most sense given the fact it is ostensibly a fitness outfit.
Apple Fitness+ is available as a $4.99 per month subscription and is also part of the Apple One subscription bundle, too.
