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Peloton Looking for Investor Like Apple to Buy 20% of Company
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I don't think that Apple would be very interested in this. Even if they decided to integrate Apple Health into the bikes, they would want more than 20% of the company, and they would want the bikes to be used for Fitness+
I could see Amazon or Google wanting to buy 100% of Peleton just so they could say they have their own fitness program.
Amazon could integrate it into Prime.
Google could shut it down after 12 to 18 months. 🙂
I could see Amazon or Google wanting to buy 100% of Peleton just so they could say they have their own fitness program.
Amazon could integrate it into Prime.
Google could shut it down after 12 to 18 months. 🙂
How about Cathie Wood? She used to be a believer in the company. ?♂️
All she has to do is
Instead they can create something like CarPlay for Fitness+, connect your iPhone to a certain type of workout equipment, see your workouts, sync progress, etc ?♂️
Deliveroo might be interested. They need bikes. Oh, wait ….. Maybe they can “virtually” deliver your pizza
As I'm typing this the stock is at $15.43, so at most it can only fall another $15.43.
I have a thought that the vast majority of Peloton's subscriber base are already Apple subscribers. So the net addition of subscribers to Apple would be minimal. However, it would propel the Fitness+ concept to a leadership position in the market.
I love Peloton's set up. I don't have to go to the gym, I don't have to worry about what I am wearing, I can do it at anytime during the day and I find the instructors and set up very motivating. There is also enough variety in content and options that I don't get bored. The new guide product is similar to those over priced mirror systems and get's you into the Peloton ecosystem at a very low starting price point.
Monthly fee is equivalent to a decent gym that would offer instruction and my entire family has access.
If Apple is serious about fitness, I think this would be a very interesting addition. It won't come with the regulatory burdern that other types of acquistions we have (such as a company that is closer to Apple's core business, no pun intended).
Either sweep them in under Apple Fitness+ at full acquisition or leave them alone.
On a light day at the gym, I get on the stationary bike and set up the iPad Pro. That combo suits me just fine when I need an instructor based workout.
*checks my burn bar*
On a light day at the gym, I get on the stationary bike and set up the iPad Pro. That combo suits me just fine when I need an instructor based workout.
*checks my burn bar*
Sorry, but I can't think of Peloton without thinking of the Black Mirror episode 15 Million Merits....
"Come on, Peloton! Almost there!" I cringe every time I see the ads where they call out "Peloton" to the users.
The benefit of Peloton is in its community and reputation. The latter is being destroyed by the CEO and the former is being limited because existing members are no doubt smelling the end and looking to unload their bikes before they become useless.
That said, while Apple could afford to acquire the whole company, I can see them injecting some cash into Peloton on the condition that it go into a strong partnership with deep Apple Watch integration and rebrand the classes "Apple Fitness+ on Peloton" curated by Pelton's excellent fitness team who could also take over Fitness+ classes on Apple TV and audio classes on Apple Watch. Apple doesn't need to go into the gym equipment business so a full acquisition might not make sense, but having a popular hardware partner with Fitness+ as their class branding would absolutely help propel Apple to the front of the pack.
You get that impression because gym equipment doesn't have high turnover and GymKit hasn't been around long enough to see it appearing in many gyms yet, other than those that have the resources to refresh their gear regularly. I've seen it in newer hotel gyms and at mega gyms. The neighbourhood private gym has equipment from the 90s that works just fine.
That said, while Apple could afford to acquire the whole company, I can see them injecting some cash into Peloton on the condition that it go into a strong partnership with deep Apple Watch integration and rebrand the classes "Apple Fitness+ on Peloton" curated by Pelton's excellent fitness team who could also take over Fitness+ classes on Apple TV and audio classes on Apple Watch. Apple doesn't need to go into the gym equipment business so a full acquisition might not make sense, but having a popular hardware partner with Fitness+ as their class branding would absolutely help propel Apple to the front of the pack.
You get that impression because gym equipment doesn't have high turnover and GymKit hasn't been around long enough to see it appearing in many gyms yet, other than those that have the resources to refresh their gear regularly. I've seen it in newer hotel gyms and at mega gyms. The neighbourhood private gym has equipment from the 90s that works just fine.
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If you're going to get one, please get the real deal and get a Peloton, not a cheap peleton knock off.
The same goes for televisions. Get a Panasonic, not a Panaphonic. Get a Sony, not a Sorny.
?
Actually didn't invest in Acorn. Apple (mostly just bringing money) along with Acorn (original intellectual property, IP) and VLSI ( a silicon foundry and IP ) founded Arm to make processors. Arm was/is a separate entity from Acorn that was "spun out".
Arm -- processors that Apple was going to use.
Akamai -- web services that Apple was buying in bulk.
Samsung -- LCD panels that Apple is buying in bulks .
All of those are subcontractors for products/services that Apple was constructing. Apple is often Scrooge McDuck when it comes to paying for components/services. So if the contractor needs to do a large capital outlay upfront, then sometime Apple provides the upfront money to get the lower prices. The money is not primarily an investment because Apple wants to tap into the company's general business. It is about buying control for the specific task(s) Apple wants them to do so that Apple can deliver their own product. It far closer to hiring subcontractors than "investing in companies".
Peloton is actually a competitor of Apple (Fitness). Why Apple would spend tons of money propping up a competitor to a service they are still trying to grow to a significant market share? That is all kinds of goofy and lots of hand waving.
Samsung was/is a competitor to several Apple products , but they are a huge conglomerate. They make washing machines , computer chips , refrigerators , cell phone tower radios, ships .... almost everything and the "kitchen sink". If they make something better than everyone else then there is good reason to just deal with the "coopetition/competition" tension.
In contrast, Peloton just made a series of bonehead moves and are stuck with greatly sagging stock price. Most of this "come by 20% of company" is a set of company excutives with deeply 'underwater' stock options and/or shares wanting someone to come in and bail them out. That is about zero benefit for Apple stockholders.
if Apple Fitness was a larger healthy 'core' to augment with Peleton's stuff then maybe. But wrapping fledgling Fitness a round a "lost in the woods" Peloton "core" is pretty dubious. If anything it would be a bigger boat anchor.
Apple generally does not do "general investing" in other companies due primarily to what the company i doing independent of a direct result for Apple.
https://www.marketwatch.com/story/why-apple-doesnt-have-a-venture-capital-arm-2016-06-15
There are some PR and "grease the political wheels" investments they do ... but that to is mostly to benefit Apple's image.
Apple has nothing equivalent to the historic ATT Bell Labs or IBM Watson Labs.
The bulk of it though is not general investing at all. It is a means to an Apple end. ( acqui-hire to acquire talent. IP buy to acquire something as an internal component , etc. )
It is sad because Peloton truly has a great product. I would hate to see them go under. Their coaches are top tier and the digital library they've built is absolutely massive. Using Apple Fitness+ felt like a cheap knockoff in comparison.
I agree that GymKit needs more time to catch on. Equipment is extremely expensive for gyms (which are mostly franchised) and are contractually scheduled for renovations every 5+ years or so.
I agree that GymKit needs more time to catch on. Equipment is extremely expensive for gyms (which are mostly franchised) and are contractually scheduled for renovations every 5+ years or so.
You know what? I'm looking for investors to fund my dying business too. Contacting potential buyers now.
Their Guide hardware is a joke. Far too expensive for how little it does. They need to recognize that their value is the classes and the instructors. They have so many various classes that it makes Fitness+ look like a toy in comparison. Their trainers are fantastic.
I'm guessing they will eventually stop making the bike and tread and migrate the platform to something that works with any equipment.
I'm guessing they will eventually stop making the bike and tread and migrate the platform to something that works with any equipment.
Good luck with that Peloton.
But are we really calling Apple Fitness as "fierce competition" to them? I don't know anyone who uses the service.
But are we really calling Apple Fitness as "fierce competition" to them? I don't know anyone who uses the service.