“Sell Peloton” – cries Blackwells Capital, a major shareholder

An open letter to the board of Peloton call for the CEO and Founder to step down and for the company to be sold.

Quite simply Peloton messed up the pandemic. When just about everyone in the world worked from home and bought exercise machines, Peloton trundled along and hit PR disasters along the way as images of their TREAD treadmill literally riding over a young child’s head led the company to blame the parents.

Here’s how badly Peloton is doing

• The share price is below the initial offering and down more than 80% from its high.
• Over 12 months, Peloton underperformed every other company in the Nasdaq Top 100, topping off its underachievement with a $376 million net loss.
• CEO Foley has cashed in shares to the value of $115m whereas shareholders lost close to $40 billion.

Blackwell suggests numerous potential buyers including “any number of technology, streaming, metaverse, and sportswear companies” such as Apple, Disney, Sony, and Nike. Another obvious contender would be Amazon.

Naturally, if there are multiple suitors looking to acquire Peloton that will push up the share price and, of course, Blackwell might make some money. Or, at least, lose less. (Edit: Indeed these rumours caused a 30% rise in Peloton’s share price)

Alternative to a Peloton Bike: Try CAROL Bike