Several private equity firms are reportedly exploring the possibility of acquiring Peloton (NASDAQ:PTON), the connected fitness company currently seeking ways to refinance its debt and recover from 13 consecutive quarters of losses, according to a CNBC report on Tuesday.
Shares of Peloton surged by 13% in early trading following the news. The New York-based company has engaged in preliminary discussions with at least one private equity firm about potentially going private, sources familiar with the matter revealed.
A Peloton spokesperson declined to comment on the speculations, stating, “We do not comment on speculation or rumors.”
The consideration for a buyout comes shortly after Peloton announced significant organizational changes. Last week, CEO Barry McCarthy stepped down, and the company announced job cuts as part of a cost-reduction effort following disappointing financial results.
Despite reducing prices, Peloton has faced declining demand for its stationary bikes and treadmills, which contributed to lower-than-expected revenue for the third quarter and prompted the company to revise its full-year forecast downwards.
The report further noted that while several private equity firms have shown interest in acquiring Peloton, it remains uncertain whether any formal negotiations have taken place.
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