San Francisco, February 6: Amazon is reportedly acquiring US exercise equipment and media company Peloton to gain a foothold in the health-fitness industry. Amazon has been speaking to advisers about a potential deal, reports Wall Street Journal.
“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,” the report said.
Peloton reported a net loss of $376 million for Q1 2022, sending its stock into freefall the same day Planet Fitness reported it had exceeded expectations. The company has lost over $20 billion in value since November. Amazon India Signs MoU to Turn Rural Women into Entrepreneurs in Karnataka.
However, amid heavy shipping delays, Peloton slashed the price of its original Bike and introduced two new products. “By the end of the year, it spent $420 million to buy Precor, one of the world’s largest commercial fitness equipment makers,” reports The Verge. Amazon is also exploring launching a Peloton-like “Prime Bike”.
Peloton’s main products are Internet-connected stationary bicycles and treadmills that enable monthly subscribers to remotely participate in classes via streaming media.
Peloton charges a $39 monthly membership fee to access classes and additional features on their exercise equipment, or $12.99 for users only accessing the content via app or website In January this year, Peloton paused production after greatly increased demand during early stages of the Covid pandemic had vanished.
(The above story first appeared on Morning Tidings on Feb 06, 2022 12:05 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website morningtidings.com).
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