Birdhouse Demo with Tony Hawk, Check flyer to the left.
Adidas Agrees to Acquire Reebok in $3.8 Billion Deal
“Adidas-Salomon announced today that it had agreed to acquire Reebok International Ltd. in a deal valued at $3.8 billion. The transaction is likely to reshape the sports footwear and apparel industry.
“The deal will give Nike its first formidable competitor in more than a decade. A combined Adidas-Reebok will control about 20 percent of the market, although it will remain behind Nike, which has about a third of the $145 billion worldwide market.
“The transaction puts two of the world’s best-known brands together and combines a star-studded stable of athlete and entertainment endorsers including the basketball player Allen Iverson (Reebok), the soccer player David Beckham (Adidas) and the rap artists Jay-Z (Reebok) and Missy Elliott (Adidas)” (Don’t forget about Stevie Williams!).
“John Horan, publisher of Sporting Goods Intelligence magazine, sees the $9 billion branded-shoe market in the United States rising 8 percent this year.
“The combined company would likely have increased clout among retailers and an ability to command shelf space. The company would also be better positioned to bid on endorsement contracts and to wring discounts from the multitude of media outlets from which it buys advertising.”(Whoa!)
“Still, the transaction may raise questions among some investors because it comes at a time when consumers are moving toward fashion-related footwear. Indeed, Nike demonstrated that trend last year when it acquired Converse sneakers for its Chuck Taylors, which have become a retro-fashion staple.”
Don’t think skateboarding isn’t buried between the lines somewhere…