WSJ therefore unlikely to be fakenews.
We should expect big companies to explore various opportunities/companies. Don‘t forget Amazon was previously exploring a peloton type partnership with another company.
When they have done their due diligence they may stop. But the point is that various possibilities are open.
I’m not sure the average Peloton user would have signed up to Peloton Amazon product. Amazon have a much less premium feel to their offering and have mostly succeeded in hardwear (Echo / Fire tablets) when selling the devices as a loss leader.
Maybe that’s what Peloton needs, mass market but if that were the case they could stick a fire tablet to a cool looking exercise bike and commission / buy up a library of spin classes and stick them on Prime Video.
Your point is of course very good. We don’t know what Amazon would want to do to the brand. Also note there is a piece in the FT saying that Nike is also evaluating a bid.
Two quotes from the article:
Although Wall Street has lost faith in Peloton’s future over the past year its finances are not in dire straits.
Monthly churn — the number of subscribers leaving Peloton each month — was just 0.79 per cent, suggesting current users remain enthused.
Nike we’re who I predicted would buy it, they’re so much smaller than Apple or Amazon it’ll be a much bigger part of their business. Peloton have a more than an insignificant apparel business which Nike could bolster.
Nike feels like a better home
Nike have a very unusual collaboration with Apple (Nike co-branded Apple Watch) and would have to assure themselves that they wouldn’t damage that relationship before making a bid for Peloton. No wonder that the reports are that they haven’t talked to Peloton yet but were considering a bid in abstract.
So in general terms how will this be perceived by the markets. ?? Is this good news or otherwise?
And climbing . Glad I bought some yesterday
The markets tend to love job cuts and getting a former CFO with pedigree will be seen as a coup.
Having the vision to be a founder is a different set of skills to that of an operator. Not everyone has the over lapping skills.
This is a fantastic deck produced by activist shareholder black well capital.
Some select highlights
When you’re own words, maybe a little out of context, look this bad it’s not a good sign
John Foley stepped aside from CEO but in reality he’s now the Executive Chairman with over 39% of the voting rights.
A tad old now but still insightful, this post.
This ain’t good
“Project Tinman” is a great name though
Any signs if the wheels are back on this one?