After years of failed efforts to gain traction in the sportswear market, Reebok may be getting a new owner, and Percy “Master P” Miller and former NBA All-Star Baron Davis are reportedly at the top of the list of potential buyers.
The two have jointly entered negotiations with the parent company Adidas and are looking to acquire a household brand name for an asking price of around $2.4 billion.
This is coming 15 years after Adidas bought Reebok to take on Nike and increase its share in the forever growing sportswear market. But after failing to understand the culture it wanted to impact, Adidas is forced to shed Reebok, after writing down the brand's book value by nearly half compared to '18.
I think Reebok is being undervalued. I left Nike as a 22-year-old kid representing myself and made the jump to Reebok, which took a chance on me as a creative and as an athlete. I want the people I know athletes, influencers, designers, celebs to sit at the table with me.
Baron Davis, Forbes
Reconnecting Reebook with hip hop and basketball culture might be the way for the company to get back on track, and Master P and B-Diddy seem like the perfect guys to do it. As Kori Hale of The Forbes put it; they are both serial entrepreneurs with investments spanning sectors including media, technology, sports, music, fashion. They have plans to not only turn around the brand but to give other smaller shoe companies opportunities for distribution. While creating a new cool identity for Reebok, they want to change the narrative by offering African Americans a piece of the athletic footwear and apparel pie.
As we focus on turning Reebok into a lifestyle brand, not just a basketball brand, our most important initiative will be to put money back into the community that built this company.
Percy Miller, Forbes
Miller and Davis plan to embark on the influencers route and acquire individuals who will join the likes of Cardi B and Kendrick Lamar as the brand's globally recognized ambassadors. The goal is to maximize the company's presence on the market projected to reach $6 billion by '25 in North America alone and revitalize once an iconic brand by getting back to its roots.
With the right business strategy applied and the right cultural leaders inserted, the future opportunities for Reebok are endless. Hopefully, Miller and Davis will have the perfect formula to utilize them.