Peloton Shares Surge Amid Reports of Potential Buyout by Private Equity Firms

Benzinga 2024-05-08

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Peloton shares rose following reports that private equity firms are considering a potential buyout. The company faces financial challenges after 13 consecutive quarters of losses and a recent worse-than-expected third-quarter performance. As part of its turnaround plans, the company has announced a CEO transition and a 15% global workforce reduction. Despite having a profitable subscription service with a dedicated user base, Peloton has struggled with high production costs, product recalls, and declining demand for expensive at-home exercise equipment.

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