An activist investor in Peloton Interactive is calling on its board of directors to dismiss its CEO and co-founder, John Foley, and to explore a sale of the company, whose share price has declined drastically due to falling demand for its products and connected fitness solutions. Blackwells Capital, which holds a stake of less than 5 percent in the company, mentioned “high fixed costs, excessive inventory, a listless strategy, dispirited employees, and thousands of disgruntled shareholders.” Among other grievances, the investor’s letter says that Foley hired his wife as a key executive and that Peloton has signed a 20-year lease for a huge office in New Yorkk City, “seemingly because he enjoys living there (and owns a newly-acquired $55 million vacation home nearby).” “All the while,” it adds, “shareholders have lost nearly $40 billion in wealth. Mr. Foley, in contrast, has sold stock regularly and repeatedly, reaping more than $115 million in proceeds.” The letter suggests that Nike, Apple, Disney, Sony or another strategic investor involved in sportswear, technology, streaming or the metaverse might be attracted to buy Peloton to extend its presence in the home fitness, health and wellness market.

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