Blackwells Capital Activist Presentation Deck
B MR. FOLEY APPEARS TO BE SELLING ASSETS UNDER FINANCIAL DURESS
I
"Foley, who stepped down as Peloton CEO in February, is under pressure to put up more collateral BUSINESS
for the loans as Peloton's stock price has cratered by more than 80% in the past twelve months..." 1
INSIDER
As of September 30, 2021, John Foley had pledged approximately 65%
of his economic interest in Peloton
Recent reports suggest that Mr. Foley may be facing personal liquidity
issues due to margin calls associated with these pledging arrangements
▪ On February 28, 2022, John Foley sold approximately $50 million in
Peloton stock (at a 12% discount) to MSD Partners, an investment firm
backed by Michael Dell
In our view, this transaction and the Company's lack of transparency
is troubling and raises several important questions:
BW
Was Mr. Foley's latest sale the result of a margin call on his pledged shares?
Mr. McCarthy has a previous business relationship with MSD through his
role as a director of MSD's SPAC; what was his role in facilitating this
transaction?
Why did MSD appear to get preferential treatment (i.e., a discounted price)?
Did MSD offer concessions, such as an agreement to vote those shares in
accordance with Mr. Foley's recommendations?
BLACKWELLS CAPITAL
Peloton ex-CEO John Foley sells $50
million in stock to Michael Dell's
investment firm
PUBLISHED THU, MAR 3 2022.6:56 AM EST UPDATED THU, MAR 3 2022.8:18 AM EST
Lauren Thomas
@LAURENTHOMAS
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JENNIFER GOULD GIMME SHELTER
Back peddling Down-on-his-luck Peloton
founder lists $55M Hamptons retreat at a loss
John and Jill Foley's oceanfront estate one of the priciest East End sales of the year before the brand
spun out of control.
Sources (from top to bottom): (1) Dakin Campbell and Becky Peterson, "Goldman Sachs is turning up the heat on Peloton founder John Foley because of personal loans backed by the company's crushed stock," Business Insider, March 10, 2022.
(2) Lauren Thomas, "Peloton ex-CEO John Foley sells $50 million in stock to Michael Dell's investment firm," CNBC, March 3, 2022.
(3) Jennifer Gould, "Down-on-his-luck Peloton founder lists $55M Hamptons mansion at a loss," New York Post, March 3, 2022.
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