• by Karlene Lukovitz  @KLmarketdaily, April 22, 2020

In its latest move to generate cash for its streaming business and other priorities, NBC Universal has sold about half of its stake in Peloton Interactive, generating about $178 million.

NBCU converted some 10.3 million Class B Peloton share to Class A shares, and sold 5.2 million of those for $34.21 per share, according to The Hollywood Reporter.

NBCU, which was an early investor in Peloton, still owns more than 5.1 million shares the exercise equipment and live-streamed workouts company, although THR suggests that that may amount to less than 4% of Peloton’s share base, which expanded after it went public last September.

NBCU parent Comcast’s 2019 annual report cited $184 million in unrealized gains related to its Peloton stake.

Peloton’s shares took a $1.5-billon hit in early December, after its an ad (shown above) in its holiday campaign was publicly skewered for being perceived as body-shaming. But as of April 13, the stock was up nearly 13%, thanks to Roth Capital initiating a buy rating at a price $2 above the stock’s $36 price, based on the company’s positive positioning for exercising at home during the pandemic and forward-looking growth opportunities. 

Like ViacomCBS, which is selling off “non-core” assets to help fuel its streaming services strategy, Comcast/NBCU needs cash flow to help support the $2-billion launch of its Peacock streaming service and other growth initiatives.

Last year, Comcast also sold its full stake in Snap Inc., realizing a $293-million gain on the sale, after losing $263 million on the investment in 2018.

With all media and entertainment companies now challenged by pandemic-driven advertising declines, Comcast also raised $4 million in debt last month to boost its liquidity, notes THR.