Sources: Exercise-bike firm seeks funds
Peloton Interactive Inc., the company that sells exercise bikes with tablets that stream live "spin" classes, is seeking to raise at least $120 million at a valuation of $1.2 billion, two people familiar with the company's fundraising said.
The bikes are $1,995 with a $250 delivery fee. To take the classes, cyclists must purchase a $39 monthly class subscription. The 5-year-old company, based in New York, has developed something of a cult following among busy consumers who relish a class atmosphere without having to leave the house.
One of the two people, who asked not to be identified because the negotiations were private, said he planned to pass on an investment, because of the rich valuation and his belief that in an economic downturn customers would seek cheaper exercise options.
A Peloton spokesman declined to comment on fundraising but said company data suggested subscriptions would be among the last discretionary items cash-strapped customers would cut.
Peloton has raised $120 million to date, including $75 million in late 2015 from consumer-oriented private equity firm L Catterton. Other investors include technology venture capital firm True Ventures and Tiger Global.
-- Bloomberg News
Chinese demand apology over T-shirts
BERLIN -- The Chinese Embassy in Berlin demanded Friday that a German online retailer stop selling a line of T-shirts with slogans it says are insulting to China.
The offerings from retailer Spreadshirt.de include T-shirts with slogans like "Save a shark, Eat a Chinese."
The embassy said in a statement that it has complained to the German government and is seeking an apology, an explanation and for the offending shirts to be pulled.
However, the head of the Leipzig-based company, Philip Rooke, said he planned to keep the disputed designs available for purchase.
Rooke said his company provides an "open platform" for people to create and share ideas on merchandise, and "in a few cases, some people may find a design controversial while others do not."
Rooke added that he had "no intention of causing anyone offense."
-- The Associated Press
Facebook app imitates Snapchat Stories
Facebook Inc. isn't done copying Snap Inc., its younger, newly public rival.
In the social media giant's mobile chat app, Messenger, users can now post to a feature called Day to broadcast annotated photos and videos of their life that disappear in 24 hours. That's the same way the Snapchat app's popular Stories tool works.
Los Angeles-based Snap, the owner of Snapchat, held an initial public offering last week and now has a market value of more than $25 billion. The IPO also brought up questions about the company's growth potential, with investors raising concerns that copycatting by Facebook might prevent Snapchat from expanding its user base.
-- Bloomberg News
Pinterest buys Q&A app Jelly Industries
Pinterest Inc. has acquired Jelly Industries, the question-and-answer app led by Twitter Inc. co-founder Biz Stone.
Jelly's product lets people ask questions and then uses an algorithm to pair them with experts to give answers. Pinterest said the startup's skills will help expand its online search tools, including a new feature called Lens that conducts a search based on what's in a photo.
As part of the deal, Stone will become a special adviser to Pinterest's co-founder and chief product officer, Evan Sharp. Jelly co-founder Ben Finkel will join the growth product team.
Closely held Pinterest is paying for Jelly in stock, though the companies wouldn't disclose a price. Stone said he was an early investor in Pinterest, a website where people can post and search for pictures that inspire plans for recipes, fashion and travel.
-- Bloomberg News
Norway wants bitcoins from drug deal
COPENHAGEN, Denmark -- Three men charged in Norway with selling drugs online have to pay back 120 bitcoins valued at $144,300, on top of millions in Norwegian kroner -- the first time the Scandinavian country has demanded to be paid in the electronic currency, a prosecutor said Friday.
Richard Beck Pedersen says the men in their 30s allegedly used underground websites to sell drugs, and that most of the payment was done with bitcoins because transactions with the electronic currency have a high degree of anonymity.
Beck Pedersen said the three men behind the online shops were formally charged Friday with selling drugs.
He added that investigators have "evidence for the sale in bitcoins," adding prosecutors also demand they pay $360,167. A trial is expected later this year.
"This is in no way an official Norwegian recognition of the digital currency," Beck Pedersen told The Associated Press.
Bitcoin allows people to buy goods and services and exchange money without involving banks, credit card issuers or other third parties.
-- The Associated Press
British Columbia paves the way for Uber
One of the strongest holdouts against car-hailing companies like Uber and Lyft Inc. appears to be finally giving in.
British Columbia unveiled new rules recently that pave the way for the companies to offer their services in Vancouver and other cities in the province -- as long as the government wins re-election in a vote scheduled for May.
The Canadian province will allow Uber Technologies Inc. and similar companies to operate by December, Minister of Transportation and Infrastructure Todd Stone said. In the meantime, the government will provide funding to traditional taxi companies to upgrade their own technology and develop new insurance products for ride sharing, he said.
"We are very excited to finally be in a position to look British Columbians in the eyes and say ride sharing is coming to our province," Stone said.
In November 2012, when Uber started to operate in the city, the board threatened to take away licenses from drivers working for the San Francisco-based company. Uber hasn't operated in the province since then.
-- Bloomberg News.
A&E in, Viacom out on Hulu live TV plan
Hulu LLC, the video-streaming service, will carry six cable channels from A&E Networks including the History network in its upcoming live TV package and has decided not to offer networks from Viacom Inc.
The accord gives Los Angeles-based Hulu a wealth of unscripted live and on-demand programming from the millennial-oriented Viceland to the more grownup fare on A&E Network and Lifetime, according to the companies. The online service was unable to come to terms with Viacom, the owner of Comedy Central and Nickelodeon.
A&E and Viacom are jockeying for spots in new online TV services to stem subscriber losses as more consumers watch TV shows and movies on the Web instead of paying for cable. The History Channel has lost almost 8 million subscribers since the start of 2013, while Viacom's Comedy Central has shed nearly 9 million, according to Nielsen data and Bloomberg Intelligence. The companies earn a monthly fee for each subscriber, so the losses hurt.
Viacom had no immediate comment.
Adding A&E will let Hulu subscribers watch scripted shows such as the History Channel's Vikings and reality programming like Project Runway as they're airing on TV instead of waiting until later.
Hulu, owned by four of the world's largest media companies, will introduce a service with more than 40 live channels for less than $40 a month within the next couple of months, according to the company. The package will include its existing on-demand service, which offers reruns of popular shows like This Is Us and Blackish, as well as original programming like The Path and Casual.
With the service, Hulu will be competing with AT&T Inc.'s DirecTV Now, Dish Network Corp.'s Sling TV and Sony Corp.'s PlayStation Vue in offering a smaller, low-cost bundle of channels. YouTube, owned by Google, expects to be out with its service in the next few months.
-- Bloomberg News
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