Under Armour sells off MyFitnessPal for $345M a fair bit lower than the $475 million it paid in 2015
Not the result they were looking for here, but lots of movement in the space...
"After watching from the sidelines as competitors Nike and Adidas abandoned their wearables and shuttered their digital business units back in 2017, selling off a digital fitness brand seems like an odd move for Under Armour to take in 2020 on the surface. Quarantines and their resulting gym closures are locking many consumers out of their traditional workout habits and opening the door for decentralized, convenient alternatives.
Of particular note, the eye of Apple has turned to home workouts with the addition of a blood oxygenation sensor to its Watch and the launch of premium subscription platform Apple Fitness+. Peloton is seeing growing numbers for its digital ecosystem, while Fitbit continues to push ahead with its data-driven Fitbit Premium offering. And although the two offerings and lifestyle brands aren't targeting the exact same demographics, it is interesting to see the juxtaposition of Under Armour's platform selloff and Lululemon's recent $500 million purchase of in-home workout platform Mirror.
During its earnings call on Friday, Under Armour warned investors of diminished revenues and general uncertainty for the remainder of 2020, primarily due to the widespread impact of COVID-19 on global retail. As the company faces down a potential $800 million to $860 million in expected, unadjusted operating loss for the year, it's possible that Under Armour saw the divestiture as a chance to sell high and avoid growing competition outside of the brand's primary focus.