Peloton shares rise on possible Amazon takeover

Shares in at-home fitness company Peloton jumped on Friday evening in extended trading on Wall Street amid reports of the company's potential takeover by e-commerce giant Amazon.

Shortly before 5am UAE time, Peloton shares surged 26.42 per cent to $31.10. Several American media reported on Amazon's interest in Peloton, which has struggled to maintain growth amid easing Covid-19 restrictions.

"Amazon has been speaking to advisers about a potential deal," the Wall Street Journal reported on Friday, citing sources. It added, however that "there's no guarantee the e-commerce giant will follow through with an offer or that Peloton, which is working with its own advisers, would be receptive".

There are other potential buyers, the business newspaper said, but no deal is imminent. "Should there be a transaction, it could be significant, given Peloton's market value of around $8 billion — down sharply from its high around a year ago of some $50bn," the newspaper reported.

Peloton has been the target of an activist investor, Blackwells Capital, who is pushing for chief executive John Foley to be fired and for the company to be sold. It benefited significantly from the pandemic restrictions of 2020 as gyms closed and people began to exercise at home. But the company has struggled to adjust to easing Covid-19 restrictions. Its shares fell more than 75 per cent last year and almost 25 per cent since January.