Master P and Baron Davis have lost out on their bid to purchase the iconic shoe brand Reebok. According to Forbes, Adidas owned the struggling shoe brand and was looking to sell it for around $2.4 billion, but it was announced that Authentic Brands Group closed the deal this week for $2.5 billion.
“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,” Kasper Rorsted, CEO of Adidas AG commented in a statement to Yahoo!.
Adidas purchased Reebok in 2005 for $3.8 billion and the brand has steadily decreased in popularity and performance. The Colonel of No Limit spoke with Forbes in December about his plans for the company had the deal taken place.
“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,” Master P told the business magazine.
Master P’s partner in the deal, Baron Davis also endorsed by Reebok during his playing career, wanted to see the brand reemerge to prominence. “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,” he told Forbes at the time.
The majority of the purchase price will be paid in cash at the deal closing and the remainder will be comprised of deferred and contingent consideration. The closing of the transaction is subject to customary closing conditions and is expected to occur in the first quarter of 2022.