Bulletin
Investor Alert

The Wall Street Journal Archives | Email alerts

Jan. 23, 2022, 7:53 p.m. EST

Activist investor wants Peloton to fire its CEO, pursue a sale

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Peloton Interactive Inc. (PTON)

or Cancel Already have a watchlist? Log In

Cara Lombardo

An activist investor wants Peloton Interactive Inc. to fire its chief executive and explore a sale after the stationary-bike maker’s stock plummeted more than 80% from its high, as growth slowed.

Blackwells Capital LLC has a significant stake of less than 5% in Peloton /zigman2/quotes/208035743/composite PTON -6.13% and is preparing to push the company’s board to fire CEO John Foley and pursue a sale, according to people familiar with the matter. The firm believes Peloton could be an attractive acquisition target for larger technology or fitness-oriented companies, the people said.

Once a pandemic darling as homebound customers ordered its exercise equipment that pairs with virtual classes, Peloton’s stock is trading below its September 2019 initial public offering price of $29 a share.

Peloton’s shares plunged 24% Thursday  after a CNBC report that it was temporarily halting production of its products because of decreasing demand. Foley said in a subsequent letter to employees that Peloton is reviewing the size of its workforce and resetting production levels, as the company adapts to more seasonal demand for its equipment. He also said the report was incomplete.

Foley also said in a statement that day that the company is “taking significant corrective actions to improve our profitability outlook and optimize our costs” and would share more details with earnings Feb. 8. The company reported preliminary second-quarter revenue of $1.14 billion and said it ended the quarter with 2.77 million subscribers.

An expanded version of this report appears on WSJ.com.

Also popular on WSJ.com:

Moms in middle age: Rarely alone, often online and increasingly lonely.

U.S. food supply is under pressure, from plants to store shelves.

/zigman2/quotes/208035743/composite
US : U.S.: Nasdaq
$ 13.62
-0.89 -6.13%
Volume: 9.70M
May 23, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$4.90 billion
Rev. per Employee
$443,350
loading...

Get news alerts on Peloton Interactive Inc. — or create your own.
This Story has 0 Comments
Be the first to comment
More News In
Industries

Story Conversation

Commenting FAQs »

Partner Center

Link to MarketWatch's Slice.