Fifteen years after buying Reebok, Adidas is parting ways with the brand.
Adidas announced on Tuesday that it plans to sell or spin-off Reebok as part of a new five-year strategy. Reebok’s net sales fell 7% in the third quarter of 2020 and 44% the quarter prior.
Adidas bought Reebok for $3.8 billion in 2006, but the business is now said to be worth around $1.2 billion. Investors called for the release of Reebok after its consistently low numbers.
“Reebok and Adidas will be able to significantly better realize their growth potential independently of each other,” Adidas CEO Kasper Rorsted said.
Reebok could become a stand-alone public company or be sold to a private equity firm or retailer. Former NBA All-Star Baron Davis and hip-hop mogul Master P were reportedly in talks to possibly purchase the company.
With Adidas finally selling off Reebok, this clears the way for a new visionary to attempt to make the Reebok brand great again.