Shares of American exercise equipment firm Peloton Interactive Inc. soared by over 20% on Monday’s premarket trading after reports of a possible takeover by retail giants, according to Reuters.

  • At least two major firms — Amazon.com Inc. and Nike Inc. — have been reported to be eyeing a possible takeover of Peloton. Representatives from the three companies have yet to comment on the matter.
  • The takeover reports come as Peloton’s shares have fallen to the lowest level in two years, marking an 84% drop from the past year. It has been hit by the decline in stay-at-home demand amid the easing of quarantine restrictions.
  • Analysts do not expect Peloton management to take a welcoming tone to a possible takeover, with its president and chief executive owning over 50% of voting shares. They are expected to push through with the long-term strategy.

Analysts do not believe Peloton and Amazon will match, given the e-commerce firm’s mass-market products and services portfolio. PTON is up 29.19%, NKE up 0.66%, and AMZN up 0.20% premarket.