Rapper Master P and former NBA All-Star Baron Davis have entered into joint negotiations with parent company Adidas to acquire the once-mighty shoe brand Reebok, which is reportedly for 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 played for 15 seasons for a variety of 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 jointly negotiated with parent company Adidas to acquire the once-mighty shoe brand Reebok, which is reportedly for sale for about $ 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 store in New York City
“These companies have benefited from us, this could be history for this black-owned company,” Master P told ESPN reporter Eric Woodyard.
In his days of acting, Davis has branched out into acting in movies and TV shows. He has also started his own clothing sales business.
Their interest in buying Reebok was reported by Forbes and ESPN.
“These companies have benefited from us, this could be history for this black-owned company,” Master P told ESPN reporter Eric Woodyard.
The mogul said he and Davis are “financially prepared” after two months of talks with Adidas.
Imagine Michael Jordan owned Reebok? That’s what I’m talking about making history, ”he said.
“As we focus on making Reebok a lifestyle brand and not just a basketball brand, our main initiative will be to put money back into the community that has built this company.”
“I think Reebok is undervalued,” Davis told Forbes.
‘I left Nike as a 22-year-old boy who represented myself and made the jump to Reebok, who took a chance on me as a creative and an athlete.
“I want the people I know, athletes, influencers, designers, celebs to sit at my table.”
Adidas, the German sportswear manufacturer, said earlier this month that it was considering a possible sale of Reebok 15 years after it bought the Boston-based company for $ 3.8 billion. The Adidas store can be seen above in New York City’s SoHo section on Dec. 14
Adidas, the German sportswear manufacturer, said earlier this month that it was considering a possible sale of Reebok 15 years after it bought the American brand to take on arch-rival Nike in its home country.
The decision will be announced on March 10, when the company will officially present its new strategy, Adidas said.
The company bought Boston’s Reebok in 2005 for $ 3.8 billion, but a lack of progress in the turnaround led to repeated calls from investors to sell the brand.
It could be an attractive target for a private equity firm or some other smaller sports retailer that will use it, like Adidas did, to break into the U.S. market, said Michael Faherty, a portfolio manager at Adidas and Nike investor Seilern Investment Management. .
Adidas said the strategic alternatives it is considering include a potential sale of Reebok as well as the brand that will remain part of the company.
“There is still a material chance that nothing will come out,” said Colin Wong, a portfolio manager at Nike shareholder Mawer Investment Management.
Wong said some possible options for Adidas include running Reebok as a standalone public company, or selling the brand to private equity, another major sports retailer, or a multi-brand player like VF Corp.
Reebok net sales fell 7 percent in the third quarter of 2020 to $ 489.40 million, after a staggering 44 percent drop in the previous quarter.
In 2019, Adidas wrote off 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 womenswear have put the brand in a better place, said Jessica Ramirez, retail analyst at Jane Hali & Associates.
“Reebok won’t be much of a bother to whoever takes it up when there is a sale,” Ramirez added.
Adidas said earlier in November that it expected a drop in overall sales for the last three months of the year, as the reintroduction of lockdowns in Europe would likely see a return to growth in China and strong demand for running gear and products designed by singer Beyonce. compensate. .