Jan 20, 2020

Peloton goes to court over "connected fitness"

Photo: Scott Heins/Getty Images.

Peloton is going to court to try to protect its head start in “connected fitness" as challengers move in, the Wall Street Journal reports.

Why it matters: "It’s a premise that has powered many upstarts in recent years: Uber is a tech company, not a taxi company; WeWork's a tech company, not a real-estate company; Tesla’s a tech company, not a car company," the Journal notes.

  • "Peloton’s internet-driven exercise scheme underpins the company’s fundamental pitch: That at its core, it’s a tech company, not just another get-fit program."

Yes, but: "Intellectual-property disputes are tough to resolve in the fitness world, because most workout techniques are based on decades-old concepts that are hard to patent," The Journal adds.

  • But Peloton wants to enforce patents on its leaderboard (which compares your performance with other riders in a virtual class), metrics (output and cadence) and bike design.

Go deeper: Balance sheets and profits seem to matter to investors again

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WeWork names real estate veteran Sandeep Mathrani as new CEO

Photo: Alex Tai/SOPA Images/LightRocket via Getty Images

WeWork has named real-estate-industry veteran Sandeep Mathrani as its new CEO, the Wall Street Journal reports.

Why it matters: The hire is the company's first significant step since its co-founder Adam Neumann stepped down from the position last September.

What to learn from HQ Trivia's demise

Scott Rogowsky, the former host of HQ Trivia on Jan. 28, 2019. Photo: Dominik Bindl/Getty Images

The death of the company behind HQ Trivia is a reminder of just how hard it is to win in the hit-driven games business.

Why it matters: Those seeking to invest in or value game startups would be wise to remember this the next time a company based upon a single premise turns briefly red-hot.

Tesla raises more than $2 billion in secondary stock offering

Photo Illustration: Sarah Grillo/Axios. Photo: Jörg Carstensen/picture alliance via Getty Images

Tesla raised $2.03 billion in a secondary stock offering, pricing at $767 per share. That's a 4.6% discount to yesterday's closing price, and an 86.2% premium to where CEO Elon Musk infamously tweeted that he had "funding secured."

Why it matters: Momentum floats apparently are a thing now, as this comes just two weeks after Musk said on an earnings call that "it doesn’t make sense to raise money because we expect to generate cash."