Activist investors at Blackwells Capital are dissatisfied with Peloton’s latest adjustments and have once again urged the firm to consider an acquisition by Apple.
It says that Peloton hasn’t made much progress under new CEO Barry McCarthy, and that “shareholders are worse off today than they were before.”
This is the second time Blackwells Capital has given Peloton a critical evaluation. The initial presentation took place before Peloton’s leadership shuffle, which saw Barry McCarthy replace John Foley as CEO.
Blackwells, on the other hand, isn’t happy with the changes Peloton has made so far.
The Blackwells study, which you can read in its entirety here, contains a comprehensive critique of McCarthy’s “first 60 days at Peloton.“
Investors say that the company hasn’t made enough management changes and that it keeps making “strategic blunders” when it comes to new product roll-outs, quality control, and cost-cutting.
After a thorough examination of Peloton’s present status, Blackwells decides that the “best choice is to sell Peloton.“
This is consistent with what Blackwells said earlier this year, and the company continues to see Apple as one of the top targets.
According to Blackwells, the following are the advantages of Apple purchasing Peloton:
- Apple becomes the category leader in digital health & wellness
- Immediate ability to bundle with 100 million Apple watch users
- Gains significant customer data edge to use for applicability across the Apple ecosystem
- Through its preexisting health, wellness, content, and lifestyle segments, Apple has a robust opportunity to cross-sell and bundle content offerings
- Strategically Defensive Asset: Prevents other big tech/health and wellness competitors from gaining a trophy subscription fitness asset