Amazon reportedly in discussions to buy Peloton
Amazon reportedly in discussions to buy Peloton
It's off-white to say that Peloton — the tech darling of a pandemic-struck era where gyms were out of bounds and much of the world was stuck at dwelling house — has struggled to transition to a post-lockdown world. The company has lost more than than $xx billion of value since November and has had to deal with the unfortunate subject field of a (fictional) death in the Sex and the City reboot.
Amazon to the rescue? That's the story reported by the Wall Street Journal, which mentions the retail behemothic equally one of a number of "potential suitors" interested in purchasing the maker of connected practice bikes, treadmills and interactive streamed fitness classes.
While a buyout for the firm may exist a run a risk — even for a company with the depth of Amazon's pockets — you tin can certainly come across the sense of it. Amazon has made its starting time steps into the world of fitness with its Halo Band tracker, and this would requite it a big push forrard. The virtual classes could be some other tempting extra for those with a Prime subscription, and perhaps most importantly of all, the company's global logistics network could get over the big trouble of aircraft bulky exercise equipment to customers around the world.
While the report is vague on the identities of the other potential suitors one proper name that has come up in the past as a possible buyer is Apple tree, which of course has its own stake in the world of fitness with the Apple Lookout man and Apple Fitness Plus.
But that feels like as well big a leap to be a serious proffer. Every bit Bloomberg's Mark Gurman wrote in a recent issue of his Power On newsletter, Peloton doesn't feel like a natural fit for Apple: fettle equipment is low margin, difficult to distribute and not bailiwick to the upgrade cycles that the company relies on with its hardware.
"Of grade, some Peloton investors would love the thought of Apple swooping in," Gurman concluded, noting that Disney and Nike had too been linked with a possible bid. "Merely for at present, that's but wishful thinking. Apple tree certainly needs to expand its fitness product line, only I don't think acquiring Peloton is the solution."
The possible Amazon bid sounds a bit more than grounded in reality. But there are nevertheless plenty of hurdles to exist overcome for it to happen even if, on newspaper, information technology feels like a good fit.
Source: https://www.tomsguide.com/news/amazon-reportedly-in-discussions-to-buy-peloton
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