Precor was certainly devalued, as both its target markets, gyms and hotels, have been hard hit. Peloton gets the channel-to-market of Precor for those customers, and the manufacturing capacity. Doesn’t mean they’re not into cycling - more that they’re into fitness, and that includes a portion of the cycling market.
Look at how much energy Zwift say they’ve been spending to “facilitate onboarding”, and you can see that many players are targeting the wider public than the sweet-spot-over-under-powermeter FTP-TSS crowd we know and love.