Peloton shares skyrocketed in extended trading Friday on a report that Amazon has approached the connected fitness company about a potential deal.
Shares of Peloton surged more than 30% in extended trading Friday after the Wall Street Journal reported Amazon has approached the connected fitness company about a potential deal. Other potential suitors are circling, the Journal reported, adding that no deal is imminent and there may not be one at all. Peloton is not yet running a formal sales process, but there is real interest in the company, a person familiar with the talks told CNBC. A representative from Peloton didn’t immediately respond to CNBC’s request for comments. Amazon declined to comment. The potential interest from outsiders comes as Peloton shares have tumbled in recent months and activist group Blackwells Capital, which has a less than 5% stake, has urged the company publicly to consider a sale. Peloton’s market cap of roughly $8 billion has fallen from a high of nearly $50 billion about a year ago. Investors poured into the stock after the onset of the Covid pandemic, sending shares up more than 440% in 2020. But they’ve started to flee as many realize that future growth will come at a much higher cost.
