Amid stories that corporations like Amazon and Nike are internally mulling a possible acquisition of Peloton, Wedbush analysts say that they “would be shocked if Apple will not be aggressively concerned” in the bidding as nicely. In reality, Wedbush believes that it might be a “enterprise mannequin threat” for Apple if one other firm have been to purchase Peloton…
Wedbush cites a number of completely different causes for why Apple is probably going contemplating, or should be contemplating, an acquisition of Peloton. In a word to buyers, analyst Daniel Ives defined (by way of Seeking Alpha):
“On the offensive entrance, Apple by means of its Fitness+ subscription service and Apple Watch technique would be in a position to leverage the Peloton companies and flywheel to considerably bulk up its healthcare initiatives which have been a key strategic linchpin for Cook.”
Wedbush’s argument is that with Amazon and Nike additionally reportedly in a Peloton deal, it could “make strategic sense” for Apple to additionally be concerned. “With media stories swirling that Peloton might be up on the market with Amazon and Nike potential suitors, we might be shocked if Apple will not be aggressively concerned in this potential deal course of,” Ives wrote in the report.
Furthermore, Wedbush speculates that one other firm like Amazon or Nike buying Peloton “would be a enterprise mannequin threat for its healthcare phase and future endeavors.”
9to5Mac’s Take
Wedbush believes that an acquisition of Peloton would be valued at between $12 billion and $15 billion. While the corporate’s worth is down considerably during the last a number of months, it nonetheless has a consumer base of over 2.8 million subscribers with churn charges below 1%. It’s laborious for any firm, Apple or in any other case, to ignore the potential of a consumer base of that dimension and with such sturdy model loyalty.
But as strongly worded as this investor word from Wedbush is, there may be nonetheless no precise proof to point out Apple is concerned in Peloton acquisition talks. There’s additionally not even proof that Peloton itself is in promoting. As of proper now, there are solely stories that Nike and Amazon are internally discussing a possible supply.
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