Under Armour Sells MyFitnessPal at a Loss to Refocus Brand
Under Armour sells MyFitnessPal to Francisco Partners for $345 million, a significant drop from its 2015 purchase price of $475 million. The athletic apparel maker also shuts down Endomondo as it pivots to target serious athletes rather than casual fitness users.
Under Armour announces the sale of MyFitnessPal to investment firm Francisco Partners for $345 million, marking a significant financial loss from the $475 million it pays for the app in 2015. Alongside this sale, the company reveals plans to shut down Endomondo, another fitness platform it acquires simultaneously over five years ago for $85 million. Under Armour states that these moves aim to simplify the brand and focus entirely on its "Focused Performer" target consumer.
Despite boasting massive user growth from 80 million to over 200 million users since the initial acquisition, MyFitnessPal caters primarily to casual and entry-level fitness enthusiasts. This broader demographic contrasts sharply with Under Armour's core brand identity, which revolves around professional athletics and dedicated semi-pro competitors. The decision to offload the app indicates that Under Armour sees diminishing long-term value in the entry-level digital fitness market.
Intense competition from tech giants and specialized fitness companies heavily influences this strategic retreat. Apple aggressively captures the beginner fitness segment through its Apple Watch hardware, Apple Health software, and the upcoming Apple Fitness+ subscription service. Additionally, the rapid expansion of Peloton's home workout equipment and digital platform further saturates the market, leaving little room for Under Armour's casual fitness apps to thrive.