Wedbush cites several different reasons for why Apple is likely considering, or should be considering, an acquisition of Peloton. In a note to investors, analyst Daniel Ives explained (via Seeking Alpha):
“On the offensive front, Apple through its Fitness+ subscription service and Apple Watch strategy would be able to leverage the Peloton services and flywheel to significantly bulk up its healthcare initiatives which have been a key strategic linchpin for Cook.”
Wedbush believes that an acquisition of Peloton would be valued at between $12 billion and $15 billion. While the company’s value is down significantly over the last several months, it still has a user base of over 2.8 million subscribers with churn rates under 1%. It’s hard for any company, Apple or otherwise, to ignore the potential of a user base of that size and with such strong brand loyalty.
Do you think Apple should be considering a Peloton acquisition to boast its fitness efforts? Let us know down in the comments!
As always, be sure to follow our friends over at Connect The Watts for all of the latest connected fitness news, reviews, and more.
