Private equity firms have shown interest in acquiring Peloton Interactive Inc., the connected fitness company that has reported losses for 13 consecutive quarters, according to multiple reports.
At least one private equity firm has held formal talks with Peloton about a potential acquisition, CNBC reported on May 7. The report did not specify which firm was involved in the discussions.
Another report from Pelo Buddy stated that multiple private equity firms are considering buying out Peloton. This comes after the company announced a large restructuring plan involving 400 employees being laid off and Barry McCarthy leaving as CEO.
Peloton's debt maturity is also a factor in the potential acquisition discussions, as the company is reportedly working towards refinancing some or all of its debt.
The news sent Peloton's stock up around 20% in pre-market trading on May 7. However, it should be noted that there are risks associated with any acquisition of Peloton, including uncertain revenue prospects and low subscriber growth.
It is important to note that these reports are based on speculation and rumors, and no official announcement has been made by Peloton or any private equity firm involved in the potential acquisition discussions.
Peloton's stock performance over the past year:
Ticker Security Last Change Change % PTON PELOTON INTERACTIVE INC. 4.07 +0.53 +15.10%
Peloton is being eyed by private equity firms for a potential buyout
CEO Barry McCarthy was ousted from Peloton last week
Peloton announced it was cutting about 15% of its global workforce, about 400 employees
Accuracy
At least one private equity firm has held talks with Peloton about a potential acquisition.
Deception
(80%)
The article reports on potential private equity interest in Peloton without disclosing the source of the information or specifying the level of interest. This is selective reporting and a lie by omission. The author also makes editorializing statements such as 'concerns over the company's uncertain future grow' which is an emotional manipulation.
concerns over the company’s uncertain future grow.
The source didn’t specify the firm’s level of interest in actually acquiring the company, according to the report.
