A mega-deal is brewing for serial entrepreneur and hip-hop mogul Percy “Master P” Miller — and it’s not music-related. Miller and former NBA player Baron Davis are in talks to acquire sneaker brand Reebok. The price tag: $2.4 billion.
Miller launched the successful indie record label No Limit in 1995 and has been a hit-making artist since 1991. He confirmed to ESPN on Monday that he is in negotiations along with Davis to acquire Reebok. The two plan to make the purchase through a special purpose acquisition company (SPAC) called Bull Horn Holdings Corp., Yard Barker reported. Miller said he and Davis are “prepared financially” after a couple of months of negotiations.
“These companies have been benefiting off us,” Miller said. “This could be history for this company going Black-owned. … Imagine if Michael Jordan owned Reebok? That’s what I’m talking about making history.”
Twitter went into a frenzy over the news.
“I promise to never buy another brand of shoes if this happens!!” one excited user tweeted.
Others wondered how the pair would raise the money. “Where the fuck are Master P and Baron Davis getting 2.4 billion dollars?,” one person tweeted. Another wrote, “Baron Davis and Master P don’t have $2.5B….”
And it seems Reebok will have to overcome an image problem, according to various tweets. “Doesn’t matter what race or color the owner is…if the sneakers aint something I want then they wont get my money…” one tweeted.
“Back in the day was the last time anybody was seen wearing Reeboks,” another said.
Reebok parent Adidas, the German sportswear company, looks to sell the long-time athletic brand, which has been struggling for the last few years.
In 2005, Adidas purchased Reebok with the goal of taking on its U.S. arch-rival, Nike. The challenge failed, according to CultureBanx.
Reebok has been trying for years to tie itself with trendsetters. In 2003, Sean “Jay-Z” Carter inked a deal with the brand and debuted S. Carter shoes. This partnership helped boost Reebok’s sales and in 2004, Reebok’s U.S. footwear sales grew by 17 percent.
Most recently, the company made deals with Cardi B and Kendrick Lamar.
Can Master P bring some more hip-hop magic to the brand? He seems to think so, especially if you add in the sports connection with Davis.
Davis is a two-time NBA All-Star and studio analyst for the NBA on TNT who played 12 seasons. During his career, he twice led the NBA in steals. He was also a highly sought-after endorser representing Nike, Reebok, and later Chinese brand Li-Ning throughout his playing career, Sneaker News reported.
Davis and Miller have both proved their business skills. Each is a serial entrepreneur with investments ranging from media and technology to sports, music and fashion. Miller’s latest venture with Uncle P food products has been a success as well.
“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,” Miller told Forbes.
Davis added, “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.”
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The pair will have their challenges with Reebok. The brand’s sales dropped an incredible 44 percent in the second quarter of 2020.
“If the deal does go though it could be a win for Black America,” Forbes reported. It “could even change the wealth paradigm through investing in a major sportswear brand, and providing opportunities that didn’t exist before in the Black community.”