Peloton shares jump as it partners with TikTok on fitness content
Peloton Interactive and TikTok are teaming to develop fitness content, the exercise equipment maker and social platform said Thursday.
The partnership marks the first time that Peloton will produce custom social content for use outside its own network, according to to the New York company and China's TikTok said. The co-branded hub, which will be available in Canada, the U.S. and the U.K., will show dedicated Peloton content, including live classes and celebrity collaborations.
The deal comes six months into a rebranding effort by Peloton, which last year launched a tiered pricing strategy for its app as it tries to broaden its audience beyond customers willing and able to buy its costly fitness equipment.
Peloton's stock price leapt more than 15% following the announcement and closed 14% higher at $6.13 per share. Still, the company's standing on Wall Street is a far cry from 2020, when its shares hit more than $160, taking a precipitous drop since then and tanking more than 20% in the last year alone.
Peloton enjoyed strong consumer demand for its stationary bikes and treadmills during the pandemic, but that appetite dissipated as the virus faded and people returned to the gym or took up other hobbies.
China's TikTok has more than 1 billion active users around the globe, with thousands of communities devoted to fitness activities, according to the companies.
Kate GibsonKate Gibson is a reporter for CBS MoneyWatch in New York.
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