(Bloomberg) — Peloton Interactive Inc. is set to face calls from an activist investor to fire its chief executive officer and pursue a sale, according to a person with knowledge of the matter.
Blackwells Capital LLC, which has a stake of less than 5%, is preparing to push Peloton to fire CEO John Foley, the person said, asking not to be identified as the information is private. The investor also wants Peloton to explore a sale of the business, which could be an attractive acquisition target for larger technology or fitness firms, the person said.
A representative for Peloton didn’t immediately respond to a request for comment on Blackwell’s proposals, which were earlier reported by the Wall Street Journal.
Peloton’s shares have tumbled more than 80% from their all-time high a year ago, as the gradual easing of pandemic-era restrictions fueled concern that growth of the stay-home fitness company will slow. The stock touched a nearly two-year low last week, after its quarterly earnings missed analysts’ estimates.
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