Beachbody Rises After SPAC Merger With Forest Road, Myx Fitness
Beachbody (BODY) – Get Report shares on Monday rose in their first day of trading, after the digital health and fitness company completed a three-way merger with exercise-bike maker Myx Fitness and the Forest Road Acquisition SPAC.
The Santa Monica, Calif., company aims to compete with fitness-industry titans such as Peloton (PTON) – Get Report.
The combined company is called Beachbody, and its Class A common stock is trading on the New York Stock Exchange under the ticker symbol BODY.
Beachbody opened at $13.15 a share. At last check the stock was at $12.56, up 4.7%.
“As a public company, we aim to accelerate our growth and introduce many more people to our proven fitness and nutrition solutions,” Beachbody Chief Executive Carl Daikeler said in a statement.
With this transaction, the executive said, Beachbody will deploy capital to grow its platform and add connected fitness hardware through the acquisition of Myx.
Beachbody reported a net loss of $21 million and revenue of $864 million for 2020, compared with a profit of $32 million on $756 million of revenue in 2019.
As for Peloton, last week it unveiled a new corporate wellness program for employees of companies in the U.S., U.K., Canada and Germany, with plans to expand to Australia later this year.
Organizations can now offer subsidized access to Peloton Digital and All Access Memberships, as well as exclusive benefits on the company’s Connected Fitness products, the company said.
Earlier this month, Loop Capital initiated coverage of Peloton with a buy rating and $140 price target.
