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Peloton crash: Home fitness company Peloton is in trouble

Peloton crash: Home fitness company Peloton is in trouble

Ever have one of those days where everything just goes wrong? Home-workout company Peloton just had one of those days, every day, for a whole quarter.

Last year Peloton capitalized strongly on the shift to work-from-home, selling thousands of its $2,000+ bikes throughout the pandemic and building up a fanatic fanbase. This year hasn't been as easy.

Jumping off the bike

Probably the most worrying trend in Peloton's numbers is also the simplest: people just aren't using their Peloton as much as they used to. The number of total tracked workouts fell for the second quarter in a row, and the average member is using their Peloton about 20% less than they did this time last year.

On top of that, the financials aren't good. Revenue did grow 6% relative to last year, but that was below expectations, and boosted by an heavy slash in the price of a Peloton. The company was hoping that the lower price would whip up crazy demand. That never happened.

What did happen was Peloton's gross profit margin fell to 12%, from 39% a year earlier, guiding the company to an overall operating loss of $360m for the quarter. Oh, and the company is having supply chain issues, like everyone else.

At the time of writing, the company's share price is down more than 33%. A Peloton hasn't crashed this hard since last year's Tour de France.

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Delta to increase bag fees by $10 on domestic flights this week, following JetBlue and United, as jet fuel surges

As the price of jet fuel surges amid the war in Iran, Delta Air Lines on Tuesday announced that it will hike its checked bag fees by $10 beginning this week.

Checking one bag on a domestic Delta flight will now cost $45, up from $35. A second bag will cost $55, up from $45, and a third will cost $200, up from $150. In a statement to Sherwood News, Delta issued the following announcement:

“For tickets purchased on or after April 8, Delta will increase fees for first and second checked bags by $10 and for a third checked bag by $50 on domestic and select short-haul international routes. These updates are part of Delta’s ongoing review of pricing across its business and reflect the impact of evolving global conditions and industry dynamics. Delta SkyMiles Medallion Members; customers traveling in First Class, Delta Premium Select and Delta One; active-duty military customers; and those with eligible co-branded Delta SkyMiles American Express Cards will continue to receive their allotment of complimentary checked bags.”

The move follows similar hikes by JetBlue and United Airlines last week. More are likely to come: when one major airline adjusts its fees, others tend to follow quickly behind. Delta last raised its bag fees in 2024, along with other major airlines.

Jet fuel prices were $4.69 a gallon on Monday, per the Argus US Jet Fuel Index. That’s up from the low $2 range for much of January.

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Paramount reportedly receives $24 billion from Gulf funds to back its Warner Bros. takeover

Three Middle East sovereign wealth funds have agreed to back Paramount’s takeover of Warner Bros. Discovery to the tune of roughly $24 billion, according to Wall Street Journal reporting.

The company’s triumph over Netflix in the bidding war came thanks in part to financial backing from Oracle cofounder Larry Ellison, billionaire father of Paramount CEO David Ellison.

Saudi Arabia’s PIF, which last year led the $55 billion deal to take Electronic Arts private, will provide about $10 billion in the deal. The Qatar Investment Authority and Abu Dhabi’s L’imad Holding Co. is also involved.

According to the WSJ, the funds will not receive voting rights in the combined Paramount-Warner company. Those working on the deal don’t expect the Gulf funds’ involvement to spark any additional regulatory reviews.

The company’s triumph over Netflix in the bidding war came thanks in part to financial backing from Oracle cofounder Larry Ellison, billionaire father of Paramount CEO David Ellison.

Saudi Arabia’s PIF, which last year led the $55 billion deal to take Electronic Arts private, will provide about $10 billion in the deal. The Qatar Investment Authority and Abu Dhabi’s L’imad Holding Co. is also involved.

According to the WSJ, the funds will not receive voting rights in the combined Paramount-Warner company. Those working on the deal don’t expect the Gulf funds’ involvement to spark any additional regulatory reviews.

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