- Peloton (NASDAQ:PTON) Interactive, Inc (NASDAQ: PTON) co-founder and former CEO John Foley faced repeated margin calls on the money he borrowed against his Peloton holdings before he quit the board in September.
- As Peloton's shares slipped over the past year, Goldman Sachs Group , Inc (NYSE: NYSE:GS) asked Foley several times to provide fresh funds or additional collateral for personal loans the bank had extended to him, the Wall Street Journal reported.
- Peloton's share price plummeted nearly 95% from its $160 peak in December 2020.
- Also Read: Fitness Equipment Maker Peloton Lays Off Around 500 Staff To Save Its Struggling Business: Report
- Resigning from the board gave Foley flexibility to sell or pledge more Peloton shares, though he said the margin calls were not why he left the company.
- Foley had pledged about 3.5 million Peloton shares as collateral as of September 2021. It was equivalent to 20% of his stake at the time.
- The pledged shares were worth more than $300 million a year ago. At current prices, they are worth roughly $30 million.
- Foley managed to secure private financing and avoid stock sales by Goldman.
- Foley's decision to quit the board in September after several months, and a sharp decline in his wealth as Peloton's sagging fortunes, diminished the value of his holdings. His stake in the company, worth $1.5 billion a year ago, is currently worth less than $100 million.
- In February, Foley stepped down as CEO.
- Foley kept his position as Peloton's executive Chair and held a controlling stake in the company.
- Price Action: PTON shares traded lower by 7.37% at $8.42 on the last check Tuesday.
- Photo via Wikimedia Commons
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Goldman Sachs Made Repeated Margin Calls To This Pandemic Favorite Company's Co-Founder
Published 11/10/2022, 15:54
Updated 11/10/2022, 16:41
Goldman Sachs Made Repeated Margin Calls To This Pandemic Favorite Company's Co-Founder
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