Guess how that'd be paid for? Certainly not from shareholder profits or the ELT pay. Which leaves the rest of us. If this goes through, we're screwed.
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A play for Peloton would be a play for membership. And Peloton members are real people, unlike the membership numbers we have now that are chok full of bots.
Then, after they buy Peloton… they should start making golf clubs….oh, wait….
Nike seems to be a great match for Peloton.
The (co-)founder has just left, 20% layoff, and hugely popular product and brand that's now on the downhill side of popularity and profitability.
That sounds like a very close match, plus has just opened the door for further layoffs, JD's favorite sport.
Any else notice how late Nike is to the party? Late to have plus size clothing (!), late to acknowledge maternal rights for athletes, late to address pay equity, late to invest in wnba equity (!), late to join the meta-verse, late to implement True sustainability strategies, late to make decisions - waffling back and forth with back to the office, now they want to buy peloton? This would have been smart a few years ago. A true innovation brand is First. This nike no longer exists.
Nike is not a content company… would be a horrid mistake.
Despite what the big-bodied models, sporting the latest heat on the dot com HP might suggest, the business runs on base inline product and chuck taylors. If Nike can’t make more than a niche business for 250$ Alphaflys and free nrc videos, how could it possibly build one on a 2k$ stationary bike that most of the addressable market already owns?
That said - My resentment for these people is palpable and I hope they JUST DO IT! lol
Even analysts agree it's a bad idea: https://www.msn.com/en-us/money/companies/nike-could-gain-3-huge-strengths-in-buying-peloton-heres-why-analysts-say-its-still-a-bad-idea/ar-AATzNRv