Activist investor Blackwells Capital on Monday called on the board of exercise equipment maker Peloton to remove CEO John Foley and start a sale process as the company’s fortunes wane.
Foley is “ill-suited to lead company and must be removed”, the investment firm founded by Jason Aintabi said in a letter to the board, asking it to begin the sale process to maximize the value of Peloton’s brand, team, customer base and technology.
Blackwell is urging Peloton to consider a sale to a company like Walt Disney Co., Apple Inc., Sony Group., or Nike Inc…
Its stock price has plummeted 84% in the last year and it is now valued at roughly $8 billion compared to $50 billion at the peak of its popularity.
“The company is on worse footing today than it was prior to the pandemic, with high fixed costs, excessive inventory, a listless strategy, dispirited employees and thousands of disgruntled shareholders,” Blackwells said.
MacDailyNews Take: Apple Fitness+, killer.
If Apple were to buy Peloton, it wouldn’t be for bikes or treadmills.
The beauty of Apple Fitness+ is that it works without specialized equipment. All you need is an Apple Watch.
If Apple were to buy Peloton, it would be for Peloton’s 2.49 million connected fitness subscribers. – MacDailyNews, January 21, 2022
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