Rapper Master P and former NBA All-Star Baron Davis have jointly negotiated with parent company Adidas to once acquire the powerful Reebok shoe brand, which appears to be on 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 former retired professional basketball player who has played 15 seasons for various teams, including Charlotte, New Orleans, Golden State, Los Angeles Clippers, Cleveland and New York.
He currently works as a studio analyst for NBA coverage by Turner Network Television.
Rapper Master P (left) and former NBA All-Star Baron Davis (right) have jointly negotiated with parent company Adidas to once buy the Reebok shoe brand, which appears to be selling for about $ 2.4 billion.
Reebok, the once popular shoe brand, struggled to compete with Nike and New Balance. The image above shows the Reebok logo at a New York store
“These companies have benefited from us, this could be a story for this company that will own black property,” Master P told ESPN reporter Eric Woodyard.
In his post-game days, Davis expanded into acting in movies and television shows. He also started his own clothing business.
Their interest in buying Reebok was reported by Forbes and ESPN.
“These companies have benefited from us, this could be a story for this company that will own black properties,” Master P told ESPN reporter Eric Woodyard.
The tycoon said he and Davis are “financially prepared” after two months of talks with Adidas.
– Can you imagine if Michael Jordan owned a Reebok? That’s what I’m talking about making history, ‘he said.
“As we focus on transforming Reebok into a lifestyle brand, not just a basketball brand, our most important initiative will be to bring the money back into the community that built this company.”
“I think Reebok is undervalued,” Davis told Forbes.
“I left Nike as a 22-year-old representing myself and made the leap to Reebok, which had 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 manufacturer, said earlier this month that it is considering a possible 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 14th
Adidas, the German sportswear manufacturer, said earlier this month that it is considering a potential sale of Reebok 15 years after it bought the US-focused brand to take over rival Nike on its home turf.
The decision will be announced on March 10, when the company officially presents its new strategy, said Adidas.
The Boston-based company bought Reebok for $ 3.8 billion in 2005, but the lack of progress in its transformation has led to repeated calls from investors to dispose of the brand.
It could be an attractive target for a private equity firm or other smaller sports retailer that will use it, like Adidas, to enter the U.S. market, said Michael Faherty, portfolio manager at Adidas and investor Nike Seilern. Investment Management.
Adidas said the strategic alternatives it is considering include both the potential sale of Reebok and the brand that remains part of the company.
“There is still a significant chance that nothing will come of it,” said Colin Wong, portfolio manager at Nike Mawer Investment Management.
Wong said some potential options for Adidas include giving up Reebok as a stand-alone public company or selling 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 44% in the previous quarter.
In 2019, Adidas noted Reebok’s book value by almost half, compared to 2018, at $ 1.03 billion.
Recent collaborations with celebrities such as Cardi B and a revitalized focus on women’s clothing have put the brand in a better place, said Jessica Ramirez, retail analyst at Jane Hali & Associates.
“Reebok will not be too much of a burden for anyone to take on if there is a sale,” Ramirez added.
Adidas said in early November that it expects a drop in total sales in the last three months of the year, as the resumption of bottlenecks in Europe is likely to offset a return to growth in China and strong demand for rolling stock and products designed by singer Beyonce.