T Nation

Adidas Buying Out Reebok?


#1

Just heard a blurb on the radio about this. Does anyone have the skinny on Adidas and Reebok merging?

Not that it matters that much. I've never herd of shoe companies merging before.


#2

"Adidas is expected to pay about $59 a share for Reebok, according to one person briefed on the matter -- awarding a 34% premium over the $43.95 at which shares closed in 4 p.m. trading yesterday on the NYSE."

From the WSJ, Aug 3.


#3

the bit i heard on the radio said adidas was hoping pick up some hip marketing savvy from reebok which has successfully reinvented itself a few times. adidas hopes to expand their relatively "pure athletic image" and cut into some of nike's gravy, while reebok gets a big german sugar daddy outta the deal.


#4

The deal involves about $3 billion and will put the combined companies at the same turnover as Nike does yearly, not bad huh


#5

I've always thought Adidas' marketing was weak. Nike's products are also a lot nicer than Adidas' for the most part and definitely better than Reebok's, IMO.


#6

I honestly perfer adidas products to Nike...but thats just me.


#7

Yup. They're basically buying Reebok for its U.S. brand recognition -- Adidas hasn't been able to compete with Nike in the U.S. market, particularly in basketball shoes (which is the entrance to the whole "hip hop" fashion market).


#8

In my list of sports brands, Puma is #1 and always will be.

The only reason I buy Reebok is because US Pro Football Jerseys are Reeboks and formed using Reebok's Patented fabric processing and hold up much better then any other pro sport uniform. Im sure most of you Football players will agree with me on that. I mean, I have a Tiki Barber jersey from back in the day, I wear it all the time and its the best quality ever.

I think Reebok is underdeveloped and sold to a audience geared toward Tennis players (as their shoes are based on the sport). If they can expand thier influence im sure they'll be just as good as Nike or Adidas, trusting they do a good job.


#9

yeah i find the quality of adidas to be higher and more consistent. plus the last time i was shoe shopping i couldn't find a single pair of nike's that fit.