Adidas is one of the biggest sneaker brands in the entire world and over the years, they have extended their reach to some other large entities, including Reebok. For instance, Adidas bought Reebok all the way back in 2006 for a price of $3.8 billion. At the time, Adidas had high hopes of turning Reebok's fortunes around and turning them into one of the most profitable sportswear giants in the entire world.
Over the years, this goal has proven to be quite difficult for Adidas, and now, they are throwing in the towel. In a new report, Reebok will be sold to Authentic Brands Group (ABG) early next year for $2.5 billion, which means Adidas is taking a $1.3 billion loss here. Regardless, Adidas is confident that this sale will be good for all of the parties involved.
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“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,” Adidas CEO Kasper Rorsted said via Sole Collector.
This is a huge deal for both sides, especially Reebok who will now have to deal with new ownership. A change like this could lead to some massive overhauls, so it will be interesting to see how Reebok develops, moving forward.
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[Via]