Activist investor urges Peloton to fire chief and explore sale


Peloton was attacked by activist investors who demanded that the makers of connected fitness bikes and treadmills dismiss their CEO and seek to sell the company after the stock price. Collapsed Over 80% in the last year.

Blackwells Capital, which owns less than 5% of Peloton, lost $ 40 billion in shareholder assets due to management mistakes such as co-founder John Foley hiring misleading investors and wives for executive positions. I blamed him.

The move begins with Peloton, one of the companies that most benefited from the blockade imposed during the coronavirus pandemic, when its share price fell by nearly 25% last week. Reported by CNBC Due to low demand, we planned to stop production.

Foley later informed employees that Peloton was considering reducing the workforce and overall production as a result of unfavorable consumer demand.

Jason Einavi, Chief Investment Officer of Blackwells, said: Letter to the board of directors.

“The company was too big, too complicated, too damaging to allow Mr. Foley to lead the company, and he had enough self-awareness and enough self-interest to resign as a director. You should have it, “added the investor.

Einavi is best known for taking over Tom Barrack, a real estate investor and best friend of former US President Donald Trump, in a record at DigitalBridge in 2019. Barrack was later forced to resign.

The demand to sell Blackwells speculates that some investment bankers could target Peloton to acquire a variety of companies, from Apple to Nike to well-funded private equity groups. It also happens when you are doing it.

“Undoubtedly, Peloton and its customer base are very attractive to technology, streaming, metaverse and sportswear companies (Apple, Disney, Sony, Nike, etc.) that can expand their presence in home, health, wellness and more. “Screen through”, says Aintabi.

“Given that Peloton has become an independent company, one or more of these strategic acquirers will in effect significantly more value than Peloton could create alone for its shareholders. I am confident that we can provide it with less risk. “

The Blackwells attack occurs after Peloton faces a reputational hit in a recent episode of a popular television show. BillionsThe main character had a heart attack while using one of the company’s exercise bikes.

It was the second time that Peloton was negatively featured on a television show as the main character last year. Sex and the City Died after using an expensive fitness machine.

Peloton did not immediately respond to criticism from Blackwells.

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The post Activist investor urges Peloton to fire chief and explore sale appeared first on California News Times.

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