today is Sep 27, 2022

Peloton shares jumped by almost a third after it emerged that Amazon and Nike are considering launching takeover bids for the exercise bike maker.

Shares surged 31pc as markets opened after the Wall Street Journal reported that Amazon has been speaking to its own advisers about a possible deal, with Nike considering a separate bid, according to the Financial Times.

Analysts have also pointed to Apple as a possible suitor, given the iPhone’s maker renewed focus on its health products.

It comes at a tumultuous time for Peloton, whose shares have collapsed more than 80pc from their high last January as it struggles to keep up momentum following soaring demand for its exercise bikes and treadmills during lockdowns.  

Clive Chalkley, a partner at the law firm Gowling WLG, said Peloton was a “highly viable sales prospect” despite recent upheaval at the company. 

He said: “For any new owner though, maintaining this momentum is not easy – there will need to be some radical changes made to the business model's offerings and services as the need to compete more aggressively with traditional gyms and sports centres returns with a vengeance.”

Peloton's market valuation has tumbled from almost $50bn (£37bn) to just $8bn over the same period, opening the door to a potential suitor.

Activist investor Blackwells Capital has been piling pressure on Peloton to put itself up for sale and fire chief executive Jon Foley amid “grave concerns” over the company’s performance.

In a searing letter it accused the company’s boss of mismanagement and misleading investors about the need to raise capital

Blackwells said Mr Foley should be held “accountable for his repeated failures” and fired immediately.

Peloton last month admitted it was considering job cuts but hit back at claims it would pause production of its expensive exercise bikes as demand wanes.

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