Indoor bike brand Peloton's share price raises value to reported $8 billion
The interactive spin bike company enters American stock exchange amid $300 million damages bill
Peloton Interactive, Inc - the company behind the at home spin bike classes widely advertised this summer - has priced its Initial Public Offering (IPO) at $29 a share.
>>> What actually is ‘One Peloton’ and how much is the bike?
>>> Peloton bike experience reviewed
The company, which sells spin bikes and treadmills with interactive screens that hook users into a subscription based workout app, has hit the upper end of expectation - which was an initial range from $26 to $29.
Peloton is selling 40 million Class A shares, raising $1.6 billion in funds to take the company to a value of $8.1 billion.
The company reportedly expects to trade its shares on American stock exchange Nasdaq on Thursday, according to CNBC.
Peloton bike users are able to login to the app and take part in live spin sessions, seeing their stats rank against others in the class and receiving occasional personal shout outs from the coach. They can also download sessions from a library of classes.
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Sale of the shares comes days after the news that music publishers have doubled the damages they are seeking in a lawsuit against Peloton bike – with claims increasing from $150 million to $300 million.
The National Music Publisher’s Association (NMPA) first sued the brand behind the at home spinning experience in March this year - alleging it had used over 1,000 songs in its workout library without proper license.
The bill increased when NMPA alleged a further 1,200+ songs had been found.
Peloton has as many as 1.4 million members, and pulled in $915 million revenue in the year running up to June 30.
However, net losses sit at a reported $245.7 million, thanks in part to increased advertising spend.
The brand received less than favourable attention from the cycling community, after it issued a cease and desist letter to YouTuber Shane Miller for his use of the word ‘peloton’.
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Michelle Arthurs-Brennan the Editor of Cycling Weekly website. An NCTJ qualified traditional journalist by trade, Michelle began her career working for local newspapers. She's worked within the cycling industry since 2012, and joined the Cycling Weekly team in 2017, having previously been Editor at Total Women's Cycling. Prior to welcoming her daughter in 2022, Michelle raced on the road, track, and in time trials, and still rides as much as she can - albeit a fair proportion indoors, for now.
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