Peloton looks to sell significant minority stake to shore up business

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Peloton Interactive Inc. is exploring a sale of a sizable minority stake, in an effort to shore up its business as the once-hot bike maker’s stock continues to sink.

The fitness company is targeting potential investors including industry players and private-equity firms that could take a stake of around 15% to 20%, according to people familiar with the matter. Discussions are at an early stage and there are no guarantees the New York-based company will find a taker or agree to a deal.

New capital could bolster Peloton PTON, -9.09% as it attempts a major turnaround. It could also serve as a vote of confidence if it comes from an established private-equity firm or technology giant such as Amazon.com Inc., which is among the suitors that have explored a full purchase of Peloton, The Wall Street Journal earlier reported.

Peloton enjoyed high times as a pandemic darling, with homebound customers ordering its exercise equipment and streaming its virtual classes. Its valuation soared. But the company’s fortunes sagged as lockdowns eased and gyms started to fill up again. Peloton’s value has fallen from a high of around $50 billion early last year to around $5.6 billion this week. The shares lost around 9% Thursday amid a broader market rout.Mastering the art of ‘failing up’ at work.

 

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