Deepwater predicts Apple acquisition of Peloton

Deepwater Asset Management last week announced their 2024 predictions, and out of the 13 items included, one that caught our attention was the prediction that Apple would acquire Peloton. Head below for more details. Minneapolis based investment firm, Deepwater Asset Management, predicts that in 2024 Apple will finally acquire Peloton – the firm is headed by former tech analyst, Gene Munster.

Even though analysts consistently predict this acquisition, the notable difference with Deepwater Asset Management is that last year, 8.5/10 predictions from Deepwater were accurately predicted – in other words, this would be a list to watch. The Apple acquiring Peloton prediction is : Apple will look to bolster their workout segment in 2024 by adding fitness equipment to compliment the Watch and fitness tracking software.

Peloton has a loyal subscriber base of about 3 million users that will add about $1.7B to Apple’s subscription revenue, additionally this fits well into Apple’s continued investment in health and wellness. The question is, besides their loyal subscriber base of three million, what would Peloton have to offer Apple? A couple of years ago, our colleagues over at reported that an acquisition of Peloton would be valued between $12 billion and $15 billion and that it would make “strategic sense” for Apple to acquire Peloton, especially given the Apple Fitness+ subscription service and health tracking on the Apple Watch.

During the height of the pandemic, Peloton witnessed a sales boom with its Bikes and Treads as so many people were only able to workout from home – but Peloton has been struggling to maintain its value post Covid, with its shares down 23% in 2023 and 96% from its 2021 Covid highs. With people returning to the office and to the gym – and with the – the connected fitness company’s numbers plummeted, and they in 2023.

Would Apple acquire a business that hasn’t shown growth in nearly three years? If Apple did acquire Peloton, what might that look like for Peloton subscribers? The connected fitness pieces are there – the Apple Watch, the Fitness+ subscription, Peloton’s massive library of classes and content – we’ll just have to wait and see if this time, the analysts are correct.

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