Shares in Peloton soared by as much as 18% on Tuesday after CNBC reported that several private equity firms are considering a buyout of the connected fitness company, which is looking to refinance its debt and return to growth after 13 consecutive quarters of losses.

CNBC’s report cited an unnamed source in confirming that the New York-based company has held talks with at least one firm as it considers going private, with a number of other private equity firms also reportedly viewing Peloton as a potential acquisition target, although it is unclear whether any other formal discussion have taken place.

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Peloton has become a takeover target after seeing its market capitalisation plunge to about $1.3bn as of Monday, from a high of $49.3bn in January 2021.

Last week, Peloton’s CEO Barry McCarthy quit and the company announced around 400 job cuts as part of a plan to reduce costs after posting weak results in its latest earnings report.

According to CNBC’s source, there is no certainty a deal will happen and the business could remain a public company.

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