Rapper and business mogul Master P and former NBA star Baron Davis are reportedly in talks to purchase struggling footwear and apparel company, Reebok. The company, which is owned by Adidas, is valued at $2.4 billion, Vibe reported.
The news of the duo’s interest in acquiring the company was confirmed by ESPN’s Eric Woodyard via a tweet Monday. “These companies have been benefiting off us, this could be history for this company going Black-owned,” Master P, born Percy Robert Miller, told the news outlet.
On December 14, Adidas announced it had “begun to assess strategic alternatives” for its struggling subsidiary including “both a potential sale of Reebok as well as Reebok remaining a part of the company.” The company said it will make an announcement on that decision on March 10, 2021.
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If Master P and Davis are successful in reaching a deal, they will become the first Black owners of a major sneaker company. Though Adidas purchased Reebok for $3.8 billion in 2005 with the aim of turning around the fortunes of the struggling company, it has failed in maximizing revenue. And though a recent “turnaround plan” saw the company “significantly” racking up some profits partly due to partnerships with celebrities including Cardi B, Khalid, and Ariana Grande, it has still struggled with regards to turning over, as it had a 42% drop in profits in the second quarter of 2020, according to Footwear News.
“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,” Davis told Forbes.
Both Davis and Master P have invested in a host of businesses over the years in areas including media, technology, sports, music, fashion and food. The duo told Forbes they want to create a “new cool identity for Reebok” and also “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,” Master P said.