MASTER P AND BARON DAVIS LOST BID TO ACQUIRE REEBOK
Master P and former basketball star Baron Davis lost the bid to purchase the struggling shoe brand Reebok. According to Forbes, Adidas was looking to sell it for around $2.4 billion, but Authentic Brands Group closed the deal this week for $2.5 billion.
“Reebok has been a valued part of Adidas, and we are grateful for the contributions the brand and the team behind it have made to our company. With this change in ownership, we believe the Reebok brand will be well-positioned for long-term success. As for Adidas, we will continue to focus our efforts on executing our ‘Own the Game’ strategy that will enable us to grow in an attractive industry, gain market share, and create sustainable value for all of our stakeholders,” said Kasper Rorsted, CEO of Adidas AG.
Adidas purchased Reebok in 2005 for $3.8 billion, and the brand has steadily decreased in sales and popularity. Last December, Adidas mentioned to the public that it might sell Reebok. Adidas said it was assessing “strategic alternatives” for Reebok as it develops a new five-year strategy. These include “both a potential sale of Reebok as well as Reebok remaining a part of the company,” the statement added.
“As we focus on turning Reebok into a lifestyle brand not just a basketball brand, our most important initiative will be to put money back into the community that built this company,” Master P told the business magazine.
Reebok endorsed Master P’s partner, Baron Davis, while he played in the NBA. Davis was looking d to the opportunity and wanted to see the brand make a comeback.
“I think Reebok is being undervalued. 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,” he told Forbes.
Although Master P didn’t close the deal this time around, it wouldn’t be a surprise if the boss man already has a new deal up his sleeve.
