Peloton shares rose on takeover chatter while announcing leadership change and a cost-cutting program.
Fitness-tech firm Peloton spiked more than 15% higher off the back of a rumoured private-equity powered takeover.
Talks have taken place between Peloton and at least one private-equity group, that’s according to a report by US financial media firm CNBC.
Peloton last week launched a cost-cutting program aiming to take $200 million of spending out the business.
At the same time, it announced the exit of Barry McCarthy who as chief executive oversaw the company lose around 90% of its market value.
The company, which makes the interactive ‘spin’ bikes that surged in popularity during the COVID lockdowns, came to market in a 2019 IPO priced at $27, that gave it an $8.1 billion valuation, and the stock hit its Pandemic peak in early 2021 at some $162.72 per share.
Today, after spiking higher on the takeover talk, Peloton stock is priced at just over $4.00 – giving it a market value of close to $1.5 billion.
