The at-home fitness startup Tonal was recently the subject of a new study that was published by Bloomberg. According to Bloomberg’s reporting, Tonal was in contact with Peloton Interactive Inc. throughout the previous year to explore the possibility of selling the firm to a public fitness company. However, the transaction did not go through as planned, in part because Peloton has been working to strengthen its liquidity situation and the parties involved were unable to come to an agreement on the price. In addition, Tonal had purchase discussions with several additional potential strategic buyers.
Bloomberg’s request for a statement from Peloton was ignored, and the company did not provide a response. The previous year was difficult for Peloton, but the most recent report from Bloomberg serves as a timely reminder that they are not alone in their struggles.
According to Bloomberg, companies reaped the benefits of the early stages of the epidemic, when many gyms were forced to shut and individuals were forced to stay inside their homes. However, challenges associated with sustaining that growth trajectory resulted in a halt in operations for certain companies, such as Peloton.
The home fitness business as a whole is having a tough time. According to recent reports, Tonal may be planning to seek capital at a value of $500 million, which would represent a decrease of less than one-third from the company’s prior valuation of $1.9 billion. They have also investigated the possibility of making an acquisition.
Besides this situation, Tonal is considering finding a replacement for Aly Orady, who is both the present CEO and the founder of the firm. According to Bloomberg, an official decision hasn’t been made as of yet.
Tonal has revealed that it would be raising the cost of its monthly membership for all of its users, as was previously rumored.
Lululemon paid a total of $500 million to purchase the top rival Mirror in the year 2020. And only later, they implemented a 50% price reduction for their product. In addition, iFit Health, better known to you as the company that manufactures NordicTrack exercise equipment, has decided against going forward with its initial public offering.
Read also:
Leave a Reply