The shares of PelotonExtended trading on Friday saw a surge of more than 30% the Wall Street Journal reported AmazonThe company has been in contact with the fitness group to discuss a possible deal.

According to the Journal, other suitors may be in pursuit.

Peloton does not have a formal sales process in place yet. However, there is genuine interest, according to a source familiar with the talks.

CNBC reached out to Peloton for comment but a representative didn’t respond immediately. Amazon refused to comment.

Peloton shares are down and activist group Blackwells Capital has less than 5% of the company’s stock, indicating potential outside interest. has urged the companyPublicly to discuss a sale.

Peloton has a market cap now of approximately $8 billion, down from nearly $50 billion just a year earlier. After the Covid pandemic hit, investors poured money into Peloton’s stock. This drove shares up by more than 44% in 2020. They’ve begun to run as they realize the high cost of future growth. Closed Friday, shares were at $24.60, a significant drop from the IPO’s $29.

Peloton may be a good target for companies looking to strengthen their ties with the wellness and health industry. Amazon has long invested in connected healthcare, such as by creating a Halo Health and Wellness tracker. Amazon also added interactive home videos and meal planning capabilities to its Halo subscriptions last year.

Peloton’s tech and hardware are not yet known by Amazon. However, Amazon might integrate Peloton products into its rapidly growing devices unit. It houses the popular Fire TV streaming sticks, Echo smart speakers, and a large range of connected home items. 

Peloton’s original Bike costs $1,745 and includes shipping. This would make it the most expensive Amazon hardware, other than its Astro Home robot, at $999. Peloton’s Bike+, which costs $2,495, is more expensive. You can purchase the Tread for $2,845.

According to The Journal, Amazon could use its existing businesses (such as its logistics arm) to help Peloton solve ongoing supply chain challenges. The Journal stated that the monthly Peloton subscription costs $39 and is available to those with connected devices. It could be combined into Amazon Prime Membership.

Peloton will be held in November slashed its outlook for the yearIt reported a slowing in revenue growth and declining subscriber growth. John Foley, Chief Executive of Peloton warned that Peloton was finding it more challenging to forecast growth.

CNBC reported last month, that Peloton has been working with consulting firm McKinseyIt is important to identify areas where you can cut costs. right-size its production.

Foley announced in January, that Peloton has taken “significant corrective steps to improve the profitability outlook of our company and maximize our costs”.

Peloton will release fiscal second-quarter financial results after the market closes on Tuesday. Foley, along with his team, are expected further to address these problems.

Amazon made several notable, large-scale acquisitions over the past few years. Amazon’s 2017 largest acquisition was Whole Foods, an elite grocer. It paid $13.7 billion. Amazon signed an $8.45 Billion deal with MGM Studios last May.