Master P and Baron Davis in talks to buy Reebok

0
34


Rapper Master P and former NBA All-Star Baron Davis have jointly entered negotiations with parent company Adidas to acquire the once-powerful shoe brand Reebok, which is said to be on sale for some $ 2.4 billion.

Master P is the stage name of Percy Robert Miller, a 53-year-old rapper, actor, record producer and entrepreneur with an estimated net worth of $ 200 million.

Davis, 41, is a retired former professional basketball player who played 15 seasons for various teams including Charlotte, New Orleans, Golden State, Los Angeles Clippers, Cleveland and New York.

He is currently working as a studio analyst for the NBA coverage of Turner Network Television.

Baron Davis

Rapper Master P (left) and former NBA All-Star Baron Davis (right) have jointly entered into negotiations with parent company Adidas to acquire once-powerful shoe brand Reebok, which is said to be on sale for some $ 2.4 billion.

Reebok, the once popular shoe brand, has struggled to compete with Nike and New Balance.  The image above shows the Reebok logo in a New York store.

Reebok, the once popular shoe brand, has struggled to compete with Nike and New Balance. The image above shows the Reebok logo in a New York store.

`` These companies took advantage of us, it could be the story of this company going black, '' Master P told ESPN reporter Eric Woodyard.

“These companies took advantage of us, it could be the story of this company going black,” Master P told ESPN reporter Eric Woodyard.

In his post-gaming days, Davis branched out to star in movies and TV shows. He also started his own clothing sales business.

Their interest in buying Reebok has been reported by Forbes and ESPN.

“These companies took advantage of us, it could be the story of this company going black,” Master P told ESPN reporter Eric Woodyard.

The tycoon said he and Davis were “financially ready” after two months of discussions with Adidas.

“Imagine if Michael Jordan owned Reebok? That’s what I’m talking about making history, ”he said.

“As we focus on transforming 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 built this business.

“I think Reebok is undervalued,” Davis told Forbes.

“I left Nike when I was a 22 year old representing me and made the jump to Reebok, which took a chance on me as a creative and as an athlete.

“I want the people I know, athletes, influencers, designers, celebrities to sit at the table with me.

Adidas, the German sportswear maker, said earlier this month that it was considering a potential sale of Reebok 15 years after it bought the Boston-based company for $ 3.8 billion.  The Adidas store is seen above in the SoHo section of New York City on December 14

Adidas, the German sportswear maker, said earlier this month that it was considering a potential sale of Reebok 15 years after it bought the Boston-based company for $ 3.8 billion. The Adidas store is seen above in the SoHo section of New York City on December 14

Adidas, the German sportswear maker, said earlier this month that it was considering a potential sale of Reebok 15 years after buying the American brand to take on rival Nike on its own turf.

The decision will be announced on March 10, when the company officially presents its new strategy, Adidas said.

The company bought Boston-based Reebok for $ 3.8 billion in 2005, but the lack of progress in its turnaround 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 small sports retailer to use it, like Adidas did, to enter the US market, said Michael Faherty, portfolio manager at Adidas and the Nike Seilern Investment Management investor.

Adidas said the strategic alternatives being considered include both a potential sale of Reebok and having the brand still part of the company.

“There is still a material chance that nothing will come of this,” said Colin Wong, portfolio manager at Mawer Investment Management, a shareholder of Nike.

Wong said some potential options for Adidas include creating Reebok as a stand-alone public company, or selling the brand to private equity, another major sports retailer, or a multi-brand player like VF Corp.

Reebok’s net sales fell 7% in the third quarter of 2020 to $ 489.40 million, after falling 44% in the previous quarter.

In 2019, Adidas cut Reebok’s book value by almost half, compared to 2018, to $ 1.03 billion.

Recent collaborations with celebrities like Cardi B and a renewed focus on women’s clothing have put the brand in a better place, said Jessica Ramirez, retail analyst at Jane Hali & Associates.

“Reebok won’t be a heavy burden on anyone who loads if there is a sale,” Ramirez added.

Adidas said earlier in November that it expected overall sales to decline for the last three months of the year, as the reimposition of lockdowns in Europe would likely offset a return to growth in China and strong demand for undercarriages and products designed by singer Beyonce.

LEAVE A REPLY

Please enter your comment!
Please enter your name here