Peloton announces Ford boss Peter Stern as next CEO

Peloton said on Thursday that they had Peter Stern, a ford Managing Director and co-founder of Apple Fitness+ will be its next CEO and President.

Stern, the president of Ford Integrated Services, primarily oversees the auto company's subscription services such as BlueCruise, Pro Intelligence, connectivity and security. He also led the company's digital product team.

Stern is expected to step down from his role at Ford on January 1 to take the helm of Peloton. Interim co-CEO Karen Boone will remain in the position through the end of the calendar year, while her counterpart Chris Bruzzo will step down from the co-CEO role on Friday. Both Boone and Bruzzo remain on Peloton's board.

Stern is the third CEO to lead Peloton in its history. The news came alongside Peloton's first-quarter earnings report. The company's shares rose more than 20% in early trading.

“Peter is an experienced strategist with a track record of driving sustainable growth through innovation, and we have great confidence in his ability to lead Peloton at this important time. “He brings significant expertise in scaling differentiated technology-driven platforms and a deep understanding of the health and wellness sector – making him uniquely qualified to serve as Peloton’s next CEO,” said Peloton Chairman Jay Hoag a press release.

“In addition, Peter embodies Peloton’s core values, including taking action, empowering teams of smart creatives, and working collaboratively.”

The announcement comes about six months after Peloton announced it Spotify And Netflix Managing director Barry McCarthy would step down after about two years in the job.

McCarthy had succeeded founder John Foley and worked to save Peloton from extinction by slashing costs and refocusing its strategy.

Peloton's decision to hire Stern suggests that the company is currently tripling down on the company's key value proposition for investors: its high-margin, recurring subscription revenue.

Stern's experience leading Ford's subscription business will likely help grow and retain Peloton's connected fitness and app subscribers.

In a press release, Peloton said it was looking for a new CEO who values ​​and loves Peloton's products, understands the company's challenges and opportunities, and is passionate about helping people achieve their fitness goals.

Stern was an early adopter of Peloton, a member since 2016, and “has worked at the intersection of hardware, software, content and services for over 20 years at Ford, Apple and Time Warner Cable,” the company said.

As co-founder of Apple Fitness+, he helped the industry grow its subscription base to millions and knows how to run a “complex, subscription-based business,” Peloton said.

The company said it was also looking for a product innovator and strategist, citing the more than 30 patents Stern has secured over the years, including an online media content patent.

“Working for Peloton is a dream come true for me,” Stern said in a statement. “My goal is to help millions of people live longer, healthier and happier lives. Peloton, with its unique combination of people, products and passionate members, offers me the opportunity to do just that.”

This story is developing. Please check back for updates.