Yesterday, we reported that Amazon, Nike, and others might be interested in acquiring Peloton, while its key investor Blackwells Capital advised the current CEO John Foley to be removed and the business to be sold off. A report from Wall Street Journal has now confirmed Peloton's plan to replace its CEO.
Peloton co-founder and CEO John Folley will be stepping down and becoming executive chair after leading the company for its 10 years of existence. He will be replaced by Barry McCarthy, who is the former chief financial officer of Spotify Technology SA and Netflix, and become CEO and president while joining Peloton's board.
The fitness and gym equipment company will also cut around 2,800 jobs which will affect 20% of its corporate positions. This will help the company cope with the drop in high demand for fitness equipment after the pandemic.
Whether or not Peloton gets acquired or gets sold at a depressed share price will depend on its board including Blackwells Capital and John Folley as well, since he along with other insiders, have shares giving them control of over 80% of Peloton's voting power.
Along with this, Peloton is also making other personnel changes. William Lynch, president of the company, will be stepping down from his executive role as well while remaining as a member of the board.
Erik Blachford, the company's director since 2015, is leaving the board while two new directors will be added. They are Angel Mendez, who runs a private artificial intelligence company focused on supply-chain management, and Jonathan Mildenhall, who was the former chief marketing officer of Airbnb and co-founder of branding company TwentyFirstCenturyBrand.
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