A group of investors is making a bid to part adidas away from Reebok.
The Wall Street Journal is reporting Jynwel Capital and Abu Dhabi investors are ready to offer $2.2 billion to buy Reebok from adidas with one of the primary assertions being Reebok's future would be brighter if managed independently. According to SportsOneSource, since acquiring the brand in 2005, both adidas and Reebok have experienced shrinking footwear retail market share in the U.S. with adi dropping from 10% to 6% and Reebok from 8% to 1.8%. During that same period, Nike/Jordan Brand has grown from 35% to 60% during the same period. From an outsiders perspective, you'd think adidas was gaining ground on Nike considering all the high profile moves its been making with the signing of Pharrell and Kanye. Numbers don't lie though.
Earlier this year, the focus of the Reebok brand changed with the announcement of a new corporate logo and a greater concentration on the fitness industry, a strategy the group maintains it will continue to follow if its bid is successful. So what does this mean for the sneakerhead community? Well, unless you're into Crossfit or the fitness craze in general, it doesn't look like much. Still, it'll be interesting to see how adidas responds to this offer.
[via The Wall Street Journal]
