Adidas to buy Reebok

[Hercules Rockefeller]

http://sports.espn.go.com/espn/news/story?id=2123181

Adidas buy of Reebok would boost U.S. market shareAssociated Press

FRANKFURT, Germany -- Adidas-Salomon AG said Wednesday that it will buy shoemaker Reebok International Ltd. in a $3.8 billion deal, giving the company about 20 percent of the U.S. market and putting it in a position to better challenge leader Nike Inc.


Under the terms of the all-stock deal, Adidas will pay $59 for all of Reebok's outstanding shares, a premium of 34.2 percent.

The deal is subject to regulatory approval in the United States and Europe, along with that of shareholders. Both companies said the transaction could close during the first half of 2006.

The deal will bring together two stables of athletes and entertainment endorsers. English soccer star David Beckham and rap artist Missy Elliott are under contract to Adidas.

In February, Canton, Mass.-based Reebok launched the "I am what I am" marketing campaign, which features pitches from celebrity entertainers and athletes in an effort to draw younger buyers who regard sneakers as high fashion. One of the ads featuring the rapper 50 Cent was pulled in March amid complaints that it glorified gun violence.

Wednesday's announcement came as the Herzogenaurach-based company posted a 30-percent gain in second-quarter net profit and improved sales.

Last month, Reebok said its second-quarter profit soared 71 percent on strong sales driven by its high-performance model shoes and the new marketing campaign.

[Mediator12]

Awesome. Adidas makes great gear.

[scorpio]

Adidas NFL merchandise would be SO MUCH COOLER than Reebok. I fugging hate Reebok.

[McCaffreyFan03]

I hate Adidas. I love Reebox. So yeah this is interesting.

[Rock Chalk]

I hate Adidas. I love Reebox. So yeah this is interesting.
Huh.

I hate Reebok and love Adidas.

Mostly because there are several good acronyms for Adidas, all of which apply to me.

All day I dream about sex (this one everyone knows)
All day I drink and smoke (this pertained to me prior to full time work)
Alec does ignorant dumb ass **** (this was given too me while all day I drank and smoked)

[McCaffreyFan03]

Does this mean everything will be changed to Adidas? Like the jerseys and such?

[Rock Chalk]

Does this mean everything will be changed to Adidas? Like the jerseys and such?
I certainly hope so. I hate having to buy Reebok when everything else sports related in my closet is Adidas. Adidas has this climalite stuff that keeps you warm when its chill outside and keeps you chill when its warm outside. If jersey's are made of that instead of that plastic nylon crap Reebok uses (for the replica's, Im not forking over 400 bucks for a cotton shirt or whatever it is), then I will buy a lot more.

[PatsWin2002]

This headline could've read:

"Terry Tate traded to Adidas"

[watermock]

I'm not particuliarly fond of mergers. They broke up the 7 sisters in oil, last decade, Mobile and Exxon merge. WTF was that? They were broken up for a reason.

[SimonFletcher73]

I doubt this changes a ton for their products. I'll stick with Nike. They still make kicks head and shoulders above these guys. Air Force Ones, Dunks, Jordans, Lebrons, ect.

[TheReverend]

Goddamn it Reebok went up 30% today. Wish i had seen this move today... I nailed Unocal two months ago.

[watermock]

A 34% premium sounds outrageous to me. Crazy Frogs. Oh, I guess they are Nazi's. How is a German company named Adidas? You would think they would be named Das Boot or something more appropriate.

[TheReverend]

A 34% premium sounds outrageous to me. Crazy Frogs. Oh, I guess they are Nazi's. How is a German company named Adidas? You would think they would be named Das Boot or something more appropriate.

Thats fairly standard in take-overs Mock. Take-overs single handedly justify call options.

[El Guapo]

I certainly hope so. I hate having to buy Reebok when everything else sports related in my closet is Adidas. Adidas has this climalite stuff that keeps you warm when its chill outside and keeps you chill when its warm outside. If jersey's are made of that instead of that plastic nylon crap Reebok uses (for the replica's, Im not forking over 400 bucks for a cotton shirt or whatever it is), then I will buy a lot more.


underarmour made this stuff WAY before adidas.

Although i have to say, when the nfl went from nike to reebok i was upset -- havent bought a jersey yet. now if/when they go to adidas, that would be tight.

[TheReverend]

PS. laughing pretty hard at the Das Boot comment though

[watermock]

I can make fun of myself too. Everyone is so PC now. Like Bill Murray said in Stripes, "we are all mutts, it's what makes America great..."

[watermock]

A 34% premium is rather large however. Usually it's around 10%. Seems they would of better served just to buy up stock on the market, then make the jump to finish the kill. Maybe Adidas felt the stock was seriously undervalued. I think it just means higher prices and some tie CEO with a billion dollar bonus.

Kinda reminds me of when the Germans bought Burnsies Nuclear Power Plant. That was hillarious.

[minibronco]

I love Adidas. (when I mean love I mean really really really really love) I'm okay with Reebok ('cuz Yao). I really really really really hate Nike.

By the way, Adidas is a combo of the founder's first and last names- Adi Dassler.

Oh, and I just came back from a trip to South Africa.

[minibronco]

Does this mean everything will be changed to Adidas? Like the jerseys and such?

no... money made will go to adidas.

[watermock]

I have gotten some real crap from Nike. This last pair has been rock solid however. Two years and counting. I went to a Nike Factory outlet and was astounded at the plastic crap they were pushing as shoes. Freaking plastic shoes! Anything decent was over a hundred bucks. I got these Air's for about 50 on sale, and they have been very solid, but I've had some Nike stuff fall apart on me.

[Beantown Bronco]

I've had good luck with Nike shoes.....Going on 3 yrs with my current pair (blue, orange and white as always) which only cost around $50 and they could pass as certified pre-owned with an additional three year warranty.

I can't speak for quality of Reebok or Adidas, but I just don't tend to like the looks of either of them much so I tend to stay away.

[Garcia Bronco]

I've stopped buying NFL gear since Reebok got exclusive rights.

[PatsWin2002]

I drive past Reebok headquarters in Canton, MA every day. I wonder what the merger will do to all the people employed there.

[Mediator12]

underarmour made this stuff WAY before adidas.

Although i have to say, when the nfl went from nike to reebok i was upset -- havent bought a jersey yet. now if/when they go to adidas, that would be tight.

Adidas was making it before underarmour ever existed. Like in 1989. Nice try though.

BTW, underarmour was founded in 1996 if you were going to look it up.

[Mediator12]

I drive past Reebok headquarters in Canton, MA every day. I wonder what the merger will do to all the people employed there.

Good time to start looking for a new House! The market will probably be a lot lowere in the next six months.

[Beantown Bronco]

The average guy wearing underarmour (unless it's being worn underneath something else) is like the average woman wearing a tube top. Some things just shouldn't be allowed out in public.

[El Guapo]

Adidas was making it before underarmour ever existed. Like in 1989. Nice try though.

BTW, underarmour was founded in 1996 if you were going to look it up.


from my experience underarmour's product is better..

[Mediator12]

from my experience underarmour's product is better..

That I can live with. It is a matter of opinion and personal preference. BTW, I still wear gear I have from Adidas from the mid 90's that is climalite though. The stuff is very durable and has not faded at all.