Beachbody went public in a SPAC that will see the company partnering with precious business competitors, so as to create a healthy lifestyle conglomerate.
Beachbody went public on Monday, 28 June 2021. The in-home fitness and weight solutions provider went public through a three-way business combination. The other businesses involved are Forest Acquisition, which was backed by the NBA Hall of Famer, Shaquille O’Neal, Peloton and previously Beachbody competitor, Myx, in a special purpose acquisition company (SPAC).
Ahead of Beachbody going public on Sunday, 27 June 2021, the Chief Executive Officer (CEO) of the company, Carl Daikeler explained the purpose of the acquisition. He stated, “We’d like to consider ourselves the Disney Plus of Fitness because [our] content has this substance that’s not ephemeral. Its value doesn’t evaporate if you don’t (watch) it that week. It has value that resonates for months and years.”
Therefore, the company going public with a SPAC, along with the aforementioned companies, is believed to be aimed at growing the reach and scope fulfilled by the businesses. Analysts believe that the company going public is a move towards establishing a healthy-lifestyle conglomerate. As a conglomerate, the companies are estimated to have a joint total of over 2.6 million subscribers and an evaluation estimated at $2.6 billion.
The sentiments were further corroborated by Daikeler when he stated, “With this transaction, we will deploy capital to grow our platform, add connected fitness hardware through the acquisition of Myx and continue to create the most exciting and innovative in-home fitness content.”
Already speculated as imminent diversification platforms are Beachbody on Demand, which will serve as a Netflix-like platform. Another is OpenFit, which is speculated as a separate entity from Beachbody on Demand, but contains workout videos and live virtual classes. Lastly, the acquisition of Myx is said to be aimed at providing cheaper exercise bikes than Peloton.