FRX, Beachbody, & MYX Fitness recently announced the three-way merger vote date. It is scheduled for 6/24/21 at 10AM. Beachbody is marketing themselves as the PTON for the masses.
Here are my thoughts:
$PTON had $1.82B of revenue in 2020. It currently trades at a market cap of roughly 32.9B. $FRX / $BODY is on track for $1.1B in revenue this year and is being valued at roughly 2.9B after the merger is completed.... I think we have some upside here...
Peloton’s trailing 12 months revenue is currently at 3.692B. Again $FRX soon to be $BODY is on track to hit 1.1B this year. That’s plenty of upside for the short term.
Long term they are projected to hit 3.3B by 2025. With the integration of all parts of their business (Bikes, Supplements, Connected Fitness Subscriptions Services, OpenFit App, BODi, etc.) the value for each new customer acquired goes up. Plus, they will have a marketing war chest (400M+ in cash if I remember correctly from an interview) after the merger to achieve their growth target.
Beachbody has also been profitable for the 18 of the last 20 years they’ve been in business. Unlike many other SPACs and growth companies they’ve proven they can generate income.
Once all aspects of their NEW business model come together, they will be able to sell the equipment, the subscriptions, and nutrition supplements directly on their platforms. Imagine completing an interactive workout from the bike and being able to purchase all your nutritional supplements directly from the screen with a few taps.
Each customer acquired will mean much more revenue than strictly subscriptions can bring in alone.
Are you buying? What are your reasons for and against the Beachbody, MYX Fitness, and FRX three-way merger?
Submitted May 31, 2021 at 07:23PM by ItzCheze https://ift.tt/3uEaYNS
