Giant Bikes Buy Stages Cycling – well, a big chunk of it

stages cycling logo icon brand imageGiant Buy Stages (32.5% Stake)

This year is going to be interesting for the global cycling industry. Very interesting and that’s even assuming China doesn’t invade Taiwan.

The market is fundamentally over-supplied at the moment. Companies like Garmin that have a billion dollars in the bank will be fine, although there is an outside chance that they might soon announce redundances to maintain operating margins. Other companies like Wahoo with excellent products but not so much cash will also be fine but will have to give up some control of the company to get a cash injection. Lesser companies inbetween those extremes will be the ones that give the press some fun and games and customers some angst as we worry if our product will continue to be supported.

Stages Cycling was probably in a similar position to Wahoo’s current predicament. It needed some cash and Giant has kindly given it several wads in exchange for 32.5% of the company.

We perhaps should have seen this coming in 2022 as the cycling market started to falter and as Stages latest Dash bike computer was near-simultaneously released as a Giant-branded device. That said, Giant can’t be having things all its way at the moment as they are shifting more towards a consumer-direct sales model to bypass those pesky retailers who take a slice of Giant’s potential profit margin.



Giant Group invested $20 million in Stages Cycling, acquiring a 32.5% stake in the company known for its power meters, indoor trainers, and bike computers. The deal, approved by Giant’s board, includes $6.5 million in common stock and $13.5 million in convertible bonds.

In addition to its popular power meter embedded cranks, Stages is known for its studio bikes aimed at health clubs and businesses. The investment by Giant’s subsidiary Gaiwin BV was reported by Taiwanese media before the board meeting.

via Cycling Industry News


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2 thoughts on “Giant Bikes Buy Stages Cycling – well, a big chunk of it

  1. Is that just complete speculation on your part about Garmin potentially doing layoffs or do you have a source? Garmin just recently announced plans to hire more people at their Yarmouth, Maine facility (former Delorme HQ). Not that it would be unheard of for a company to reduce headcount in one area and add in another but it wouldn’t help much with operating margins.

    1. Garmin has to hit that 50% margin figure for investors.
      I’m anticipating a significant fall in Q4 figures (I could be wrong, we’ll soon see)
      They’ll just have to reduce the headcount if the margins crash
      On the balance of probabilities, I’d guess that Garmin margins remain good enough to AVOID layoffs but it’s relatively obvious what’s going on in global markets right now and Garmin aren’t immune
      Garmin has outperformed the NASDAQ by 6 percentage point points over the last month, which is a good sign for them. They have their eggs in more baskets than just fitness

      Edit: PS I see your link to parts of Garmin that were hiring and I heard a few weeks ago that TACX were hiring too.

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