Rap mogul Master P and former NBA star Baron Davis are negotiating to buy Reebok from its parent company, Adidas, for $2.4 billion according to Forbes. Both Davis and Miller are entrepreneurs with investments in media, technology, sports, music and fashion. Miller also recently entered the food market with his Uncle P food products. In addition to business savvy, both bring significant financial wealth as well. Miller has an estimated net worth of over $200 million. Davis’ net worth is estimated at $60 million.
“I think Reebok is being undervalued,” said Davis, according to Forbes. “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.”
“These companies have been benefiting off us, this could be history for this company going Black-owned. 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” said Master P, whose real name is Percy Miller to ESPN.
The deal would make the legendary shoe giant the first Black-owned major sneaker brand. The men’s purchase could reenergize Reebok in the sneaker and streetwear markets as a Black-owned brand in a year that has seen many calling for change in socioeconomic and racial justice. They reportedly plan to pave lanes making it easier for independent sneaker-makers to get their products distributed. Adidas acquired Reebok in 2005 for $3.8 billion, however, its value has decreased significantly in the decade and a half since that deal, and Adidas is looking to offload the brand. The No Limit boss and Davis plan on combining their expertise and decades of experience in the Hip Hop, sports, tech and business lanes to bring Reebok back to prominence. They will have their work cut out for them, as Reebok’s sales dropped 44 percent in 2020’s second quarter while accounting for just eight percent of Adidas’ total sales in the first half of the year.