Rapper Master P and former Baron Davis of the NBA All-Star have entered into joint negotiations with parent company Adidas to acquire the powerful Reebok shoe brand, which is said to be on sale for about 2.4 million dollars.
Master P is the stage name of Percy Robert Miller, a 53-year-old rapper, actor, record producer and businessman who is said to have a net worth of $ 200 million.
Davis, 41, is a retired former professional basketball player who played 15 seasons on several teams, including Charlotte, New Orleans, Golden State, Los Angeles Clippers, Cleveland and New York.
He currently works as a studio analyst for Turner Network Television’s NBA coverage.
Rapper Master P (left) and former NBA All-Star Baron Davis (right) have entered into joint negotiations with parent company Adidas to acquire the powerful Reebok shoe brand, which is reportedly on sale for about $ 2.4 million
Reebok, the popular shoe brand, has struggled to compete with Nike and New Balance. The image above shows the Reebok logo in a New York City store
“These companies have benefited us, this could be a story for this company that would become black-owned,” Master P told ESPN journalist Eric Woodyard
In his post-game days, Davis has devoted himself to acting in movies and TV shows. He has also started his own clothing sales business.
Forbes and ESPN reported interest in buying Reebok.
“These companies have benefited us, this could be a story for this company that would become black-owned,” Master P told ESPN journalist Eric Woodyard.
The tycoon said he and Davis are “financially prepared” after two months of talks with Adidas.
Imagine if Michael Jordan owned Reebok? That’s what I’m talking about making history, ”he said.
“By focusing on turning Reebok into a lifestyle brand and not just a basketball brand, our most important initiative will be to return the money to the community that built this company.”
“I think Reebok is being undervalued,” Davis told Forbes.
“I left Nike when I was a 22-year-old boy representing myself and made the leap to Reebok, which risked me as a creative and as an athlete.
“I want people I know athletes, influencers, designers, celebrities to sit at the table with me.”
Adidas, the German sportswear manufacturer, said earlier this month that it was considering selling Reebok 15 years after buying the Boston-based company for $ 3.8 million. The Adidas store is seen in the SoHo section of New York City on December 14th
Adidas, the German sportswear maker, said earlier this month that it was considering selling Reebok 15 years after buying the U.S.-focused brand to face Nike on its turf.
The decision will be announced on March 10, when the company will officially present its new strategy, Adidas said.
The Boston-based company bought Reebok for $ 3.8 billion in 2005, but the lack of progress to turn it around led to repeated calls from investors to dispose of the brand.
It can be an attractive target for a private equity firm or other smaller sports retailer that will use it, as Adidas did, to enter the U.S. market, said Michael Faherty, portfolio manager at Adidas and the Nike Seilern Investment Management investor.
Adidas said the strategic alternatives it is considering include both a potential sale of Reebok and the brand that remains part of the company.
“There’s still a lot of chance that nothing will come of it,” said Colin Wong, portfolio manager for Nike Mawer Investment Management shareholder.
Wong said some potential options for Adidas include the withdrawal of Reebok as a stand-alone public company or the sale of the brand to private capital, 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 to 44% in the previous quarter.
In 2019, Adidas scored Reebok’s book value almost in half, compared to 2018, to $ 1.03 million.
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, a retail analyst at Jane Hali & Associates.
“Reebok won’t be a big burden for anyone who takes it on if there is a sale,” Ramirez added.
Adidas said in early November that it expected a drop in global sales over the last three months of the year, as the re-imposition of blockchains in Europe would likely offset a return to growth in China and strong demand for rolling stock. and products designed by singer Beyonce.