Peloton Reportedly Eyes Sale of Minority Stake to Bolster Finances: WSJ
2022.05.06 00:46
By Yasin Ebrahim
Investing.com – Peloton is falling in afterhours trading Thursday as the connected fitness equipment maker is reportedly exploring the sale of a 15% to 20% stake to boost its finances, The Wall Street Journal reported, citing unnamed sources.
Peloton Interactive (NASDAQ:PTON) was down more than 2% in afterhours trading after falling 9% in the regular session.
The talks with potential suitors including industry players and private equity firms are said to be at an early stage, the Journal reported. The company has been struggling to replicate growth seen in the pandemic as the reopening has hampered demand.
In an effort to shore up its balance sheet, the company has raised the cost of its subscription for live and on-demand classes, and slashed prices of its bike and treadmill exercise equipment.
