the growing interest of people training at home and the inability to visit the gym on the background of the pandemic led to the success of another technology startup. Canadian manufacturer of fitness wear Lululemon announced its intention to buy manufacturer smart-mirror Mirror for $ 500 million.
according to TechCrunch, the deal can be completed before the end of the second fiscal quarter of 2020. According to the head of the canadian retailers Calvin McDonald, the deal will help Lululemon to “expand digital and interactive capabilities”.
Startup Mirror was founded in 2016 and 2018, has started to sell for 1495 dollars looks like the mirror smart display with integrated camera, audio and microphone. Then The New York Times dubbed him “the most narcissistic piece of workout equipment ever.” For a fee, the company provides users with group tutorials and individual training sessions in real time.
About a year ago, the Mirror attracted investment on the basis of the total company’s valuation at $ 300 million. After buying a startup will remain a separate company and will retain founder – leader and CEO Brynn jinnett of Putnam.
the Mirror is trying to capitalize on the same market as the manufacturer of exercise bikes with screens Peloton. The business model is similar: buying expensive equipment, the user further continues to make money, the company paying for access to videos for training. Peloton completed an IPO in September 2019. Since March 2020, the company’s stock prices nearly tripled, and the market capitalization reached 16.2 billion dollars.