Reebok may be getting a new owner, as its German sportswear parent company Adidas looks to offload the household name brand.
What We Know:
- Hip-hop mogul Percy “Master P” Miller and retired NBA star Baron Davis are in talks to acquire Reebok from Adidas for $2.4 billion, according to Forbes. With a combined net worth of over $260 million, Master P and Davis plan to create distribution opportunities for smaller shoe companies and new opportunities for wealth within the Black community.
- Reebok has failed to consistently turn a profit over the last several years. Earlier in the month, Adidas announced plans to “assess strategic alternatives for Reebok,” which includes “a potential sale”. Adidas acquired Reebok for $3.8 billion in 2005. Despite implementing a successful “turnaround plan” that “significantly” improved Reebok’s profits (thanks in part to celebrity partnerships with Cardi B, Khalid, and Ariana Grande), the brand has struggled with revenue. Reebok saw a 42% dip in profits in the second quarter of 2020, according to Footwear News. Meanwhile, Adidas’ overall Q2 loss totaled more than $300 million.
- According to MSN News, both Master P and Davis are serial entrepreneurs with hefty investments in music, sports, film, fashion, technology, and more, including Master P’s No Limit Records empire and his latest venture with Uncle P food products. Besides launching his own record label in 1991, Master P has ventured into apparel and sneakers, sports management, film, and launched his own line of food and cleaning products.
- Davis, who founded several companies including Sports and Lifestyle in Culture, The Black Santa Company, BIG, and No Label, hopes to create more seats at the table for more individuals like himself. “I think Reebok is being undervalued,” said Davis. “I left Nike as a 22-year-old kid representing myself 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, celebs to sit at the table with me.” Davis, who played 13 seasons with the NBA, was an early investor in Vitaminwater, and recently invested in Kit Super Coffee, founded by fellow former basketball player, Jordan DeCicco.
- If the deal goes through, Reebok would become the first Black-owned major sneaker company. Adding Reebok to his portfolio could end up being a power move for Master P who has been a vocal proponent of Black ownership.
Adidas hasn’t ruled out keeping the company and the final decision as to what happens is to come on March 10, 2021.
