Peloton Picks Goldman Sachs, JPMorgan to Lead IPO

(Bloomberg) -- Peloton Interactive Inc. has chosen Goldman Sachs Group Inc. and JPMorgan Chase & Co. to lead its initial public offering, which could value the home exercise startup at more than $8 billion, according to people familiar with the matter.

Banks took part in a competitive pitching process, known as a bake-off, over the past few weeks, said the people, who asked not to be identified as the details aren’t public. No final decision has been made on the timing or size of the IPO, they said.

Representatives for Peloton, Goldman Sachs and JPMorgan declined to comment. Representatives for L Catterton and venture capital firm TCV, both of which are investors in Peloton, also declined to comment.

Founded in 2012, Peloton sells exercise bikes and treadmills with tablets attached that stream live fitness classes. The cheapest bike package retails for $2,245, with subscribers paying a $39 monthly fee to take classes. The company also run studios in New York from where its live classes are streamed, and it sells a digital video subscription service for $19.49 a month that streams yoga meditation and bootcamp classes.

Peloton raised $550 million in a funding round last year that valued that company at $4.15 billion. The company said at the time it expects the financing to be its last before an IPO.

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