Peloton Shares surged 23% in premarket trading on the news that Amazon and Nike were evaluating bids for Peloton.
Peloton Interactive Inc. has drawn interest from potential buyers including e-commerce giant Amazon.com Inc. according to a person familiar with the matter, as the exercise bike maker struggles to maintain pandemic-fueled growth.
Amazon is exploring an offer for Peloton and is speaking with advisers about whether and how to proceed, a source said. Peloton has not yet decided whether it will explore a sale, according to the source.
Meanwhile, the Financial Times reported late on Friday that sportswear company Nike Inc. is also evaluating a bid for Peloton, citing people briefed on the matter, who said the considerations are preliminary and Nike has not held talks with Peloton.
Peloton and Nike did not immediately respond to a Reuters request for comment, while Amazon declined to comment.
Peloton's sales boomed during COVID-19 lockdowns, with many snapping up home fitness equipment. But its fortunes began to fade as vaccinations increased, gyms reopened and rivals offered competitive products.
In November, it hinted that demand for its exercise bikes and treadmills was slowing faster than expected, and its market capitalization since then has shrunk to about $8 billion from a peak of nearly $52 billion in early 2021.