A takeover of the ailing fitness equipment manufacturer Peloton has been denied by its new boss Barry McCarthy. Instead, he wants to expand the range of training subscriptions in order to help the former Corona winner regain his old size.
The new boss of the fitness equipment company Peloton has put a damper on speculation about the sale of the former Corona winner. Barry McCarthy told the Financial Times that he wouldn’t move from California to New York if he expected an acquisition in the foreseeable future.
Peloton shares were down about 6 percent in late U.S. trade after the comments were released on Monday. Investors had caused the price to rise sharply after media reports about an interest in buying from Amazon and Nike, among others.
demand overestimated
Peloton is a specialist in connected exercise bikes and treadmills. When the fitness studios closed at the beginning of the corona pandemic, sales of Peloton equipment jumped. But the company overestimated how long the increased demand would last. The construction of a new plant in the USA for USD 400 million was decided – the plans were dropped last week.
McCarthy was CFO of the Netflix and Spotify streaming services, making him a specialist in digital business models. Among other things, he wants to expand the range of training subscriptions at Peloton. Co-founder and long-time boss John Foley handed over the top job to McCarthy a few days ago after pressure from some investors. At the same time, thanks to shares with 20 times more voting rights, Foley and a core of company insiders would retain control of the company and would also have the final say in purchase offers.
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