Apple Could Acquire Peloton This Year, Fund Manager Forecast Suggests

[MacRumors]

Apple will likely acquire the fitness company Peloton this year, a new hedge fund manager forecast claims.

Deepwater Asset Management's annual forecast for 2024 (via Connect the Watts) says that Apple is likely to acquire Peloton sometime this year. The move would help Apple bolster its Fitness+ subscription service, adding workout equipment to compliment the Apple Watch and its existing activity tracking software. Absorbing Peloton's subscriber base of three-million users would ostensibly add about $1.7 billion to Apple's subscription revenue and line up with its continued investment in health and wellness, the company claims.

In 2022, Apple was repeatedly floated as a potential buyer of Peloton amid financial difficulties and threats to its business model, but the company's prospects have since improved somewhat and Deepwater Asset Management's new forecast is the first serious mention of the possibility in some time. Major questions remain about why Apple would want to take responsibility for Peloton's fragile business model and not simply focus on growing Fitness+, but anything is possible.

Deepwater Asset Management also believes that Apple will bring generative AI to Siri this year, introducing the revamped assistant at WWDC. The hedge fund manager is also not expecting Apple to announce any additional Vision Pro products this year.

Article Link: Apple Could Acquire Peloton This Year, Fund Manager Forecast Suggests

 

[SoldOnApple]

Wish Apple would buy Wii Fit and Ring Fit…

 

[The Phazer]

This still seems to be nothing more than wishful thinking on the part of Peloton's senior management and shareholders.

I would also like to float that Apple can acqua-hire me for $10 million a year, but that doesn't mean they're going to.

 

[arkitect]

Major questions remain about why Apple would want to take responsibility for Peloton's fragile business model

Indeed.

I'll believe it when I see it.
Otherwise I'll file it under F for Fantasy.

 

[klasma]

Apple Treadmill? Or, more likely, Apple Motion Pro? Apple ProMotion? Oh, wait.

 

[Dydegu]

Super Mario Run gonna be lit on this.

 

[adl1010]

If I was Apple, if I bought Peloton I would liquidate the hardware side and merge the rest with Apple Fitness Plus. I never got the appeal of peloton, the bikes and treadmills are insanely expensive and then you have to pay the subscription to get the service anyway? Fitness plus you just pay the subscription for the classes and you can use any hardware, much more convenient especially if you plan on using it in a gym. Plus, if Apple did this they’d be absolutely dominant in video fitness classes.

 

[Mac Fly (film)]

More like, Peloton is wanting to be acquired and this hedge fund is spreading misinformation in order to try to stimulate market interest in an acquisition of the company. Chances Apple acquires Peloton is close to zero. Chances this hedge fund manager is lying is close to 100.

 

[SoldOnApple]

Apple Treadmill? Or, more likely, Apple Motion Pro? Apple ProMotion? Oh, wait.

CarPlay like standard for treadmills and stuff.

 

[picpicmac]

I would also like to float that Apple can acqua-hire me for $10 million a year,

Well, I'm not going to sell out to Tim for anything less than $20 million/year for a 10 year contract. A man has to have some sort of self-respect.

 

[Motorola68000]

Don't really see they need to buy Peloton, unless its from the liquidators at a knock down price. There's little Peloton does that can't be replicated by Apple without breaching intellectual rights.

Might make sense for ready made customer base, but would have to be at bargain basement price.

More likely to go for games producer.

 

[_apple_apple_]

Apple usually buys software, but Apple did buy Beats and the start-up behind most of the Apple Vision Pro's hardware.

Just doesn't seem like exercise equipment is a space Apple would want to be in.

 

[GLS]

Setting aside the murky question of what to do about the hardware, I can see it. Apple has a precedent here with the Beats acquisition, which was for a streaming service primarily. Apple fitness is a nice product, but Peloton's fitness offerings are miles apart from what Apple has done. It would give Apple an absolutely massive fitness catalog dating back years.

 

[StellarVixen]

Does that mean Peloton is not doing well? If you’re looking for a buyer, that usually means you’re not doing well

 

[arkitect]

Does that mean Peloton is not doing well? If you’re looking for a buyer, that usually means you’re not doing well

After the Covid quarantine induced stay at home fitness market died down, they found themselves in trouble.

 

[deijmaster]

Peloton burnt too many bridges. Apple will not touch this by a mile.

 

[clive27]

Does that mean Peloton is not doing well? If you’re looking for a buyer, that usually means you’re not doing well

Their stock dropped from $150 to $5 since COVID. That's like 97% drop. They're also losing money WHILE revenue drops and losing subscriber. All the bad things that can happen to a company is happening to Peloton.

 

[coachgq]

If I was Apple, if I bought Peloton I would liquidate the hardware side and merge the rest with Apple Fitness Plus. I never got the appeal of peloton, the bikes and treadmills are insanely expensive and then you have to pay the subscription to get the service anyway? Fitness plus you just pay the subscription for the classes and you can use any hardware, much more convenient especially if you plan on using it in a gym. Plus, if Apple did this they’d be absolutely dominant in video fitness classes.

I agree with you. As a user of both fitness plus and peloton, the main draw for me is the metric tracking on the peloton. But at $42 a month it’s a bit steep. I use the bike for cycling and fitness plus for just about every other workout. And I do both almost daily. I know there are other ways to get these metrics on a bike, but the simplicity is what keeps me connected for now.

 

[mdatwood]

Their stock dropped from $150 to $5 since COVID. That's like 97% drop. They're also losing money WHILE revenue drops and losing subscriber. All the bad things that can happen to a company is happening to Peloton.

Pelotons subscribers have been sitting ~3M from the pandemic. The problem is they completely mismanaged the pandemic by going into debt.

I doubt Apple will acquire, but it does fit. Apple could instantly get 3M Peloton subscribers for ~3B adding those revenues to their services. Peloton users are pretty fanatical about Peloton and tend to be affluent - much like Apple. Apple's and Peloton's business models are becoming more and more similar, selling hardware with recurring services on top. Apple is clearly taking fitness seriously and adding hardware could be a good move. Peloton talent blows away anything on Fitness+, which could boost Fitness+.

A negative is that most Peloton users are probably already users of some Apple services, so it may not be completely additive.

For those who say they don't understand why people would buy an expensive piece of Peloton hardware and then pay a subscription on top of it - this is literally Apple's business model.

 

[Heat_Fan89]

Wish Apple would buy Wii Fit and Ring Fit…

But those are Nintendo products and that would require Apple buying Nintendo which isn't going to happen.

 

[Heat_Fan89]

If I was Apple, if I bought Peloton I would liquidate the hardware side and merge the rest with Apple Fitness Plus. I never got the appeal of peloton, the bikes and treadmills are insanely expensive and then you have to pay the subscription to get the service anyway? Fitness plus you just pay the subscription for the classes and you can use any hardware, much more convenient especially if you plan on using it in a gym. Plus, if Apple did this they’d be absolutely dominant in video fitness classes.

Are you kidding me? Apple excels at that! Tim on line 1.

 

[Someyoungguy]

“‌Siri‌'s perzonalisation”

This is the most creative spelling I’ve seen since 4th grade.

 

[tomtad]

I swear they say this every year

 

[Jefe's MacAir]

Never gonna happen.

 

[aknabi]

Hang on let me check my portfolio... ah Lumen Technologies down 65% last year...
News Flash: Apple could acquire Lumen Technologies this year, investment manager forecast suggests