Could Apple Acquire Peloton in 2024? 2 Things Investors Should Know About the Rumors

Thanks to its lineup of incredibly popular hardware products, and its budding services and software offerings, Apple (NASDAQ: AAPL) has become one of the most valuable businesses on the face of the planet. Its expertise and dominant success in the consumer-focused tech world could be beneficial when it comes to potential acquisitions.

Consider Peloton Interactive (NASDAQ: PTON). This once-thriving exercise equipment and app enterprise has experienced falling demand and ongoing net losses. Maybe its turnaround plans could get a boost with some help.

With its massive financial resources, is there a possibility the iPhone maker will go out and buy the struggling fitness company? Here are two important things that investors should know about the ongoing rumors of this deal.

Apple is a worthy buyer

Apple specializes in developing beautiful hardware differentiated by its own proprietary software, which is exactly what Peloton does. The difference is that Apple has maintained lasting success in a profitable manner, thanks to an emphasis on its innovative culture, brand strength, and pricing power. Peloton wants to be just like this.

With the Watch and Fitness+, Apple already has a presence in the health space. CEO Tim Cook said in 2019 that Apple’s greatest contribution to humanity “will be about health.” The overarching goal to improve people’s lives is something Peloton shares with Apple.

This deal might make sense strategically. Apple already has over 2 billion active devices. Adding exercise equipment into high-income households would provide another avenue to collect data, and there are neat ways the two companies could find ways to integrate.

For example, Apple Music could provide all the music for Peloton’s massive workout catalog. And through Apple Card, Apple could provide certain rewards or incentives to buy a piece of Peloton’s hardware.

Apple also has the financial resources to buy Peloton with cash. In fiscal 2023, the tech enterprise produced $100 billion of free…