The Beachbody Company, Inc. Completes 1-For-50 Reverse Stock Split
Portfolio Pulse from Benzinga Newsdesk
The Beachbody Company, Inc. (NYSE:BODY) has completed a 1-for-50 reverse stock split, effective November 21, 2023. The split-adjusted trading is expected to start on November 22, 2023. This move is part of a turnaround plan aimed at driving profitability and compliance with NYSE's minimum price requirements. The plan includes cost savings of $165 million by year-end and new revenue opportunities. The reverse stock split reduces Class A common stock from 177.81 million to 3.56 million shares and Class X from 136.45 million to 2.73 million shares. Fractional shares will be paid in cash, and no action is required from stockholders holding shares through intermediaries.

November 21, 2023 | 9:15 pm
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Beachbody's reverse stock split is a strategic move to increase stock price and maintain NYSE listing. The reduction in outstanding shares could potentially increase the stock's market price in the short term, aligning with the company's turnaround plan and cost-saving measures.
Reverse stock splits often aim to raise the price of a company's stock to meet exchange listing requirements and can be viewed positively if they align with broader strategic initiatives, such as cost reduction and new revenue streams. However, the market's perception of reverse splits can be mixed, as they may also be seen as a sign of distress. In the case of BODY, the reverse split is part of a larger turnaround plan, which may instill some confidence in investors.
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