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Private equity firms eye potential Peloton buyout, CNBC reports

(Reuters) – A number of private equity firms are considering buying Peloton as the connected fitness company seeks to refinance its debt and return to growth after 13 straight quarters of losses, CNBC reported on Tuesday.

Shares of the fitness equipment maker rose 20.6% in premarket trading.

The New York-based company has held discussions with at least one company in recent months as it considers going private, the report said, citing people familiar with the matter.

“We do not comment on speculation or rumors,” a Peloton spokesperson said when reached for comment on the report.

Last week, Peloton CEO Barry McCarthy resigned and the company announced job cuts to cut costs after reporting weak results.

Declining demand for its stationary bikes and treadmills despite price cuts led Peloton to report lower-than-expected third-quarter revenue and cut its full-year forecast.

A number of other private equity firms have circled Peloton as an acquisition target, but it is unclear whether they have had formal discussions, the report adds.

(Reporting by Kannaki Deka in Bengaluru; editing by Shinjini Ganguli and Devika Syamnath)