Peloton shares (NASDAQ:) fell nearly 2% on Friday pre-open after the WSJ reported the company was looking to sell a minor stake up to 20% in order to strengthen its financial position.

Peloton is said to be looking into selling to investors such as industry leaders and private equity firms that would like to buy a 15%-20% stake. Peloton’s talks with the investors are still at an early stage and there are no guarantees that the company will reach a deal, the WSJ report noted.

The move could boost Peloton’s business and its confidence if the investment comes from a private equity firm or a major industry player such as Amazon (NASDAQ:), which is also one of the interested parties that have considered a full purchase of the exercise equipment maker.

Peloton’s business thrived following the coronavirus outbreak as customers massively ordered home exercise equipment due to lockdown measures, boosting the company’s valuation. However, Peloton’s glory days ended quickly after lockdowns eased and consumers returned to gyms.

The New York-based company’s valuation has plummeted from $50 billion in early 2021 to just $5.6 billion this week, with its shares dropping a further 9% on Thursday.

Peloton, which announced in February its plans to reduce 2,800 job positions to support its valuation, and John Foley as its chief executive officer was replaced.

Foley was also a founder of Peloton. The company’s exercise equipment business was run by Barry McCarthy (NASDAQ:), who is the former CFO at Spotify (NYSE:) as well as Netflix (NASDAQ:). Peloton announced that it had dropped plans to construct a 400 million dollar factory in Ohio and that it would reduce its entire fiscal year forecast. It also made some changes to the board.

By Senad Karaahmetovic