Rapper Master P and former NBA All-Star Baron Davis have teamed up with parent company Adidas to acquire the once-mighty shoe brand Reebok, which is said to be on sale for about $ 2.4 billion.
Master P is the stage name of Percy Robert Miller, a 53-year-old rapper, actor, record producer and entrepreneur whose net worth is estimated at $ 200 million.
Davis, 41, is a retired former professional basketball player who has played 15 seasons for various teams, including Charlotte, New Orleans, Golden State, the Los Angeles Clippers, Cleveland and New York.
He currently works as a studio analyst for Turner Network Television’s coverage of the NBA.
Rapper Master P (left) and former NBA All-Star Baron Davis (right) have teamed up with parent company Adidas to buy the once-mighty shoe brand Reebok, which is said to be on sale for about $ 2.4 billion.
Reebok, the once popular shoe brand, has had trouble competing with Nike and New Balance. The photo above shows the Reebok logo in a store in New York City
“These companies have benefited from us, it could be a history for this black-owned company,” Master P told ESPN reporter Eric Woodyard.
In his after-play days, Davis left to appear in movies and television shows. He also started his own business selling clothes.
Their interest in buying Reebok has been reported by Forbes and ESPN.
“These companies are benefiting us, it could be a history for this black-owned company,” Master P told ESPN reporter Eric Woodyard.
The man says he and Davis are ‘financially prepared’ after two months of talks with Adidas.
Imagine Michael owning Reebok? That’s what I’m making history about, ” he said.
“As we focus on turning Reebok into a lifestyle brand and not just a basketball brand, our most important initiative will be to put money back into the community that this company has built.”
“I think Reebok is undervalued,” Davis told Forbes.
‘I left Nike as a 22-year-old kid representing myself and made the leap to Reebok, who ventured into me as a creative and as an athlete.
“I want the people I know to have athletes, influencers, designers and celebrities at the table with me.”
Adidas, the German sportswear manufacturer, said earlier this month that it was considering a potential sale of Reebok 15 years after buying the Boston company for $ 3.8 billion. The Adidas store will be seen in the SoHo section of New York City on December 14
Adidas, the German sportswear manufacturer, said earlier this month that it was considering a possible sale of Reebok 15 years after buying the American brand to tackle arch-rival Nike on its home turf.
The decision will be announced on March 10, when Adidas officially presents its new strategy, Adidas said.
The company bought Reebok in Boston for $ 3.8 billion in 2005, but a lack of progress in reversing it has led to repeated calls from investors to get rid of the brand.
It could be an attractive target for a private equity firm or other smaller sports retailer that would use it, such as Adidas, to break into the U.S. market, says Michael Faherty, a portfolio manager at Adidas and the Nike investor. Sailor Investment Management.
Adidas said the strategic alternatives it is considering include a potential sale of Reebok, as well as the fact that the brand is part of the company.
“There’s still a significant chance that nothing will come of it,” said Colin Wong, a portfolio manager at Maike Investment Management, a Nike shareholder.
Wong said that some possible options for Adidas include selling Reebok as a stand-alone public company, or selling the brand to private equity, another large sports retailer or a multi-brand player such as FF Corp.
Reebok’s net sales fell 7 percent to $ 489.40 million in the third quarter of 2020 after falling to 44 percent in the previous quarter.
In 2019, Adidas wrote down Reebok’s book value by almost half, compared to 2018, to $ 1.03 billion.
Recent collaborations with celebrities like Cardi B and a refreshing focus on women’s clothing have put the brand in a better place, said Jessica Ramirez, retail analyst at Jane Hali & Associates.
“Reebok will not be a big burden for whoever it is if there is a sale,” Ramirez added.
Adidas said earlier in November that it expects a decline in total sales for the last three months of the year, as the reintroduction of the closures in Europe is likely to revert to growth in China and strong demand for runningwear and products designed by singer Beyonce. .