Activist investor Blackwells pushes Peloton to remove CEO exit, explore sale

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.

Apple Fitness+ is built around Apple Watch and costs just  $9.99/month or $79.99/year or even less as part of Apple One Premiere
Apple Fitness+ is built around Apple Watch and costs just $9.99/month or $79.99/year or even less as part of Apple One Premiere

Reuters:

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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