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.
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“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.