Peloton, a technology fitness company known for its internet-equipped stationary bike, has acquired its first company, Neurotic Media, LLC, an Atlanta-based digital music aggregator, streaming and download source.
According to company representatives, the B2B music platform from Neurotic Media will be used to provide riders of Peloton's stationary bike with a music experience as they pedal.
Neurotic Media's founder Shachar “Shac” Oren will be promoted as a vice president at Peloton, while retaining his leadership role at Neurotic Media.
“We’re proud to join Peloton’s world-class team, and excited to help bring the kind of Member experience breakthroughs the brand is known for to their already powerful music solution,” Oren said in a statement. “Peloton’s platform, instructors and community present a rich environment for music ideation and innovation."
“Our members have embraced music as central to the Peloton experience and consistently rank it as one of the top aspects of the brand,” Paul DeGooyer, Peloton’s head of music said. “The addition of Shac and his amazing team to the Peloton family will help us rapidly deploy new music features we know our Members want, along with some unique innovations we think they’ll love.”
The acquisition isn't the only major move for Peloton recently. The company just launched an expanded app, announced an international expansion to the United Kingdom and Canada in the fall and mentioned it will open two new of fitness studios in New York City. Earlier this year, Peloton revealed it will soon release a $4,000 internet-connected treadmill in the fall that offers classes much like the stationary bike.
The unicorn fitness startup often heralded as "the new Apple of fitness" was valued at $1.25 billion in 2017. The company has raised a total of $444.7 million in funding, according to Crunchbase. According to several media outlets, financial details of the deal were not disclosed.
Neurotic Media was established in 2005 and graduated from ATDC, the state tech incubator, in 2008. Initial investors in the company include ATDC and Seraph Group, an angel investor based in California, according to Pitchbook. Clients of the platform include Universe CD, Media Tree, Kaiser Permanente, Pringles, Wells Fargo and Walmart.
