Rapper Master P and former NBA All-Star Baron Davis jointly negotiated with parent company Adidas to acquire the once-powerful shoe brand Reebok, which sells for about $ 2.4 billion.
Master P is the stage name for Percy Robert Miller, a 53-year-old rapper, actor, music producer and businessman whose net worth is estimated at $ 200 million.
Davis, 41, is a former retired professional basketball player who has 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 NBA coverage on Turner Network Television.
Rapper Master P (left) and former NBA All-Star Baron Davis (right) jointly negotiated with parent company Adidas to acquire the once powerful shoe brand Reebok, which is on sale for about $ 2 , 4 billion
Reebok, the once popular shoe brand, has a hard time competing with companies like Nike and New Balance. The image above shows the Reebok logo at a store in New York City
“These companies have benefited from us, this could be a story for this company to become owned by black people,” Master P told ESPN reporter Eric Woodyard
In his post-game days, Davis went on to act in films and television shows. He also opened his own clothing sales business.
His interest in buying Reebok was reported by Forbes and ESPN.
“These companies have benefited from us, this could be the story of this company that is becoming owned by black people,” Master P told ESPN reporter Eric Woodyard.
The tycoon said he and Davis are “financially prepared” after two months of negotiations with Adidas.
‘Imagine if Michael Jordan was the owner of 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 most important initiative will be to put money back into the community that built this company.”
“I think Reebok is being underestimated,” Davis told Forbes.
‘I left Nike as a 22 year old boy representing me and jumped on to Reebok, which gave me a chance as a creative and as an athlete.
‘I want the people I know, athletes, influencers, designers and celebrities to sit at the table with me.’
Adidas, a German sportswear maker, said earlier this month that it was considering a potential 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 14
Adidas, a German sportswear maker, said earlier this month that it was considering a possible sale of Reebok 15 years after it bought the brand with a focus on the United States to take on archrival Nike in its territory.
The decision will be announced on March 10, when the company will officially present its new strategy, Adidas said.
The company bought Boston-based Reebok for $ 3.8 billion in 2005, but the lack of progress in the recovery has led to repeated calls from investors to get rid of the brand.
It could be an attractive target for a private equity firm or other smaller sports retailer that will use it, as Adidas did, to enter the American market, said Michael Faherty, Adidas portfolio manager and investor at Nike Seilern Investment Management.
Adidas said the strategic alternatives it is considering include a potential sale of Reebok, as well as the brand’s permanence in the company.
“There is still a significant chance that nothing will come out of this,” said Colin Wong, portfolio manager at Mawer Investment Management, a Nike shareholder.
Wong said that some potential options for Adidas include breaking up Reebok as an independent public company or selling the brand to private equity, another major sports retailer or a multi-brand player like VF Corp.
Reebok’s net sales fell 7 percent in the third quarter of 2020 to $ 489.40 million, after dropping up to 44 percent in the previous quarter.
In 2019, Adidas lowered 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 women’s clothing have put the brand in a better place, said Jessica Ramirez, retail analyst at Jane Hali & Associates.
“Reebok will not be a burden for anyone to hire if there is a sale,” added Ramirez.
Adidas said in early November that it expected a decline in overall sales in the last three months of the year, as the re-imposition of roadblocks in Europe would likely offset the return to growth in China and the strong demand for running equipment and products designed by the singer Beyonce .