San Francisco, February 6 (SocialNews.XYZ) Amazon is reportedly acquiring American exercise equipment and media company Peloton to gain a foothold in the health and fitness industry.
Amazon has spoken to advisers about a potential deal, The Wall Street Journal reports.
“There is no guarantee that the e-commerce giant will follow up on an offer or that Peloton, which works with its own advisers, would be receptive,” the report said.
Peloton reported a net loss of $376 million for the first quarter of 2022, sending its stock into a tailspin the same day Planet Fitness announced it had exceeded expectations.
The company has lost more than $20 billion in value since November.
However, amid major shipping delays, Peloton cut the price of their original bike and introduced two new products.
“At the end of the year, it spent $420 million to buy Precor, one of the world’s largest commercial fitness equipment makers,” reports The Verge.
Amazon is also planning to launch a Peloton-like “Prime Bike.”
Peloton’s main products are stationary bikes and Internet-connected treadmills that allow monthly subscribers to participate in classes remotely via streaming media.
Peloton charges a monthly membership fee of $39 to access classes and additional features on their exercise equipment, or $12.99 for users only accessing content through the app or website
In January this year, Peloton suspended production after dramatically increased demand disappeared during the early stages of the Covid pandemic.
Source: IANS
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