According to CNBC, several private equity firms are exploring a potential buyout of Peloton (NASDAQ:PTON), the connected fitness company known for its exercise bikes and treadmills. This consideration comes as Peloton seeks ways to refinance its debt and achieve growth following thirteen consecutive quarters of losses.
Shares of Peloton surged 13% in early trading following the news. The New York-based company has reportedly engaged in preliminary discussions with at least one private equity firm about the possibility of going private, although details of these talks have not been disclosed.
Peloton’s spokesperson declined to comment on the speculation, stating, “We do not comment on speculation or rumors.”
The company recently underwent significant changes, with CEO Barry McCarthy stepping down last week and the announcement of job cuts aimed at reducing operational costs after reporting disappointing financial results. Despite price reductions, Peloton has experienced a decline in demand for its fitness equipment, which resulted in lower-than-anticipated revenue for the third quarter and a reduced forecast for the full year.
The report also noted that other private equity firms have shown interest in Peloton as a potential acquisition target, but it remains uncertain whether any formal negotiations have taken place.
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