// Both Amazon and Nike are considering bids for under-pressure Peloton, although both are thought to be in the early stages of considering making an offer
// Peloton is not officially up for sale, however, activist investor Blackwells Capital is pushing for the exercise bike maker to be auctioned after performance has nosedived
Amazon and Nike are weighing up bids to buy under-pressure exercise bike maker Peloton.
Amazon executives are understood to be speaking to advisors about potentially making an offer for Peloton, according to The Wall Street Journal.
Meanwhile, sportswear giant Nike is also evaluating a bid for Peloton, according to The Financial Times, although it is yet to hold talks with the firm.
Peloton is not officially up for sale, however, it is facing pressure from activist investor Blackwells Capital, which is demanding the exercise bike maker is sold following reports it has halted production amid falling demand for its products.
Sales of Peloton’s bikes soared during Covid-19 lockdowns but as gyms have reopened and competition has stepped up performance has dipped.
The company has also faced safety concern over its Tread+ model. Meanwhile, leaked audio emerged last month of Peloton executives discussing laying off 41% of its sales and marketing teams.
Executives were also heard saying that they could start by “stripping out low performers” in ecommerce.
READ MORE: Amazon UK sales revealed: Brits spent £23.6bn at online giant in 2021
Peloton’s market capitalisation has shrunk in recent months to about $8 billion from a peak of nearly $52 billion in early 2021.
Blackwells Capital has blamed Peloton’s chief executive and co-founder John Foley for the decline and has urged it to sack him and sell itself.
Neither Amazon or Nike have confirmed their interest.
The news comes as Amazon shares jumped 15% on the back of posting bumper golden quarter results on Thursday. The online giant posted a rise in net sales of 9% to £101.1bn in the quarter to December 31, 2021 while net profit doubled to £10.5 billion in the period
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