Shares of Peloton surged 30% in extended trading on the news, which comes days after activist investor Blackwells Capital urged the company's board to put it up for sale.
Peloton's sales boomed during Covid-19 lockdowns, with many snapping up home fitness equipment. But its fortunes began to fade as vaccinations increased, gyms reopened and rivals offered competitive products. Last week, Blackwells Capital called on the board of Peloton to remove CEO John Foley immediately, accusing him of deals that set high fixed costs and for holding on to excessive inventory, while misleading investors about the need to raise capital.
Peloton has tried to cushion the blow to its growth by cutting the price of its popular bike and ramping up its ad spending, but growth remains stagnant.
What? The Foleys are a dynasty of business titans