The Journal reported, citing people familiar with the matter, that Amazon (ticker: AMZN) has been speaking to advisors about the potential of acquiring Peloton (PTON). The report noted other potential acquirers were circling, but specified that no deal was imminent.
Amazon said it doesn’t comment on rumors or speculation. Peloton didn’t immediately respond to a request for comment.
Peloton stock, which has fallen 83% in the past 12 months, surged 29% to $31.75 in after-hours trading Friday. In 2020, amid surging demand for Peloton’s bikes during lockdowns, shares soared north of $160, but the stock has tumbled as gyms reopened.
Last month, activist investor Blackwells Capital said it sent a letter to Peloton’s board of directors suggesting the company fire CEO John Foley and explore a sale.
Peloton charges $39.99 a month for connected fitness subscriptions, which hook up with the company’s upscale stationary bikes and treadmills. Earlier this year, the firm effectively raised its prices by adding a $250 and $350 in delivery and setup costs to its Bike and Tread products, respectively. CEO John Foley said in January that the firm was taking steps to cut costs and improve its margins.
Write to Connor Smith at [email protected]