John Foley, Peloton Interactive’s co-founder and former chief executive officer, stepped down in February as troubles mounted at the exercise-equipment maker.
Photo: Michael Nagle/Bloomberg News
Peloton Interactive Inc.’s founder and former chief executive, John Foley, has sold about $50 million worth of shares in the company to an investment firm backed by computer entrepreneur Michael Dell, according to a securities filing Wednesday.
Mr. Foley, who stepped down in February as troubles mounted at Peloton, still holds enough shares after the sale to maintain effective control of the exercise-equipment maker.
MSD Partners, backed by Mr. Dell’s family office, said in a statement that it is pleased to back new Chief Executive Barry McCarthy, the former chief financial officer of Spotify Technology SA and Netflix Inc. Mr. McCarthy sits on the board of a blank-check company also backed by Mr. Dell’s family office. MSD Partners manages over $20 billion on behalf of Mr. Dell and other investors.
Peloton said Mr. Foley’s decision to sell shares in a private sale is “John’s decision, based on his own financial planning.” Mr. Foley sold nearly $100 million of his stock in 2021.
Mr. Foley converted 1.9 million Class B shares, which entitle holders to 20 votes a share, into Class A shares, which count for one vote a share, and sold those shares to MSD.
The New York-based company has lowered its revenue forecasts for several quarters in a row and has said it would cut roughly 20% of its corporate positions to help cope with widening losses as demand cools.
Peloton shares have lost 80% of their value in the past year and are trading at close to pre-pandemic levels, despite the company’s nearly tripling its revenue in the same period.
Write to Sharon Terlep at [email protected]
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Appeared in the March 3, 2022, print edition as ‘Michael Dell’s Firm Acquires Peloton Stake.’
This post first appeared on wsj.com
