Activist investor to push Peloton to fire CEO, seek sale: source

[NEW YORK] Peloton Interactive 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 per cent, 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 per cent from their all-time high a year ago, as the gradual easing of pandemic-era restrictions fuelled concern that growth of the stay-home fitness company will slow. The stock touched a nearly 2-year low last week, after its quarterly earnings missed analysts' estimates.

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