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Peloton’s ex-CEO John Foley is selling $50 million in stock

Peloton founder and former CEO John Foley has sold around $50 million worth of company stock to MSD Partners – an investment firm linked to tech billionaire Michael Dell – while the ailing fitness brand is under a new boss attempted revision.

Foley, who stepped down as CEO last month to become Peloton’s executive chairman, sold about 1.92 million shares. according to an official filing published on Wednesday. Despite the sale, Foley will retain voting control of Peloton.

MSD Partners bought the stock for $26 a share — a sharp discount compared to Peloton’s peak home fitness boom during the COVID-19 pandemic. Peloton shares hit highs near $170 in January 2021, but the stock has tumbled in recent months on a slump in demand for the company’s bikes and treadmills.

“This decision to exercise some stock options and sell these underlying shares to MSD Partners in a private sale was John’s decision based on his own financial planning,” Peloton said in a statement.

Foley was replaced as CEO by former Spotify and Netflix CFO Barry McCarthy, who told Peloton employees last month that the founder would not be “tailoring” his role at the company.

Michael Dell
Peloton founder John Foley sold the shares to a company linked to tech billionaire Michael Dell (pictured).
JOEL NITO

Led by former Goldman Sachs executive Greg Lemkau, MSD Partners manages more than $20 billion in assets for Dell and other investors.

Lemkau told Bloomberg that Peloton “is an exceptional brand and MSD Partners is excited about this opportunity to help Barry McCarthy and the Peloton team position the company for long-term growth.”

The stock sale could anger Foley’s critics as Peloton seeks to turn its business around. Foley’s leadership at Peloton came under increasing scrutiny prior to his departure as CEO.

As The Post previously reported, activist investor Blackwells Capital – one of Foley’s harshest critics – slammed the founder in January for selling shares while the company and its shareholders struggled.

“In all that time, shareholders have lost nearly $40 billion in wealth. In contrast, Mr. Foley has regularly and repeatedly sold shares and raked in more than $115 million in proceeds,” Blackwells Capital said in a scathing letter to Peloton’s board of directors calling for Foley’s resignation.

Peloton founder John Foley
Peloton founder John Foley has been criticized for previous stock sales.
Bloomberg

The Peloton founder previously reportedly sold nearly $100 million worth of shares in 2021 The Wall Street Journal. A Peloton representative declined further comment.

Foley’s tenure also prompted some internal discord, with insiders grumbling about his decision to cancel a company employee Christmas party and buy a $55 million mansion in the Hamptons while the company was in financial trouble.

Foley resigned as part of a major reorganization at Peloton. The company laid off about 20% of its workforce, or about 2,800 employees, and canceled plans for a $400 million factory in Ohio.

Peloton said the layoffs and other cost-cutting measures would ultimately result in annual savings of $800 million.

Peloton bike
Peloton has faced falling demand for its bikes and treadmills in recent months.
Joe Radle

McCarthy said the job cuts were inevitable because Peloton’s financial structure was “unsustainable” over the long term.

https://nypost.com/2022/03/03/pelotons-ex-ceo-john-foley-sells-50m-in-stock/ Peloton’s ex-CEO John Foley is selling $50 million in stock

DUSTIN JONES

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