In the past few years, Nike has purchased Converse, Starter and Umbro, the soccer apparel manufacterer. Reebok was purchased by adidas two years ago. Majority shares in PUMA AG were purchased by PPR of France, a high end couture company that owns Gucci, Yves St. Laurent among others.
In the very lucrative running footwear businness, where 2007 sales should total just over $7.5 billion globally, footwear brand consolidation may make some sense. But,
the implementation is another thing. Not all cultures mix, witness the challenges that adidas and Reebok have had. And priorities change, witness Nike putting Starter up on the
block, and looking to sell their Hockey business.
According to a story on Reuters, Frankfurt exchange has had rumors about Nike and ASICS trying to purchase adidas. adidas stock went up three percent. Conflicting responses to have lead some investors to be confused.
One so called expert, says, ” Sure, makes sense for Nike.” One expert says, ” Nike could do it, but ASICS could not do it on own.” Only people who know right now would be Mark Parker and Charles Denison, the team that runs Nike, and the team in Japan who manage ASICS.
Rumors are like wildfire. They get started and the only time one knows they are more than rumors is when the announcement comes on BBC wire at night, after midnight, like it did with adidas and Reebok.
My take? ASICS does not buy anything, makes no sense to anyone who has followed the company for the past two decades. Nike has made some aquisitions in past, but this would be very curious. Nike did $16 billion in 2006, and adidas was at $10.5 billion. Does not seem like a Nike move to grab all of adidas and its holdings. If anything, something that could give Nike more cache in women’s business could be attractive.
Watch the news reports! Let’s see if this one is just another rumor.
For the whole story, please click:
http://news.yahoo.com/s/nm/20071203/bs_nm/adidas_nike_bid_dc_2
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Larry Eder has had a 52-year involvement in the sport of athletics. Larry has experienced the sport as an athlete, coach, magazine publisher, and now, journalist and blogger. His first article, on Don Bowden, America's first sub-4 minute miler, was published in RW in 1983. Larry has published several magazines on athletics, from American Athletics to the U.S. version of Spikes magazine. He currently manages the content and marketing development of the RunningNetwork, The Shoe Addicts, and RunBlogRun. Of RunBlogRun, his daily pilgrimage with the sport, Larry says: "I have to admit, I love traveling to far away meets, writing about the sport I love, and the athletes I respect, for my readers at runblogrun.com, the most of anything I have ever done, except, maybe running itself." Also does some updates for BBC Sports at key events, which he truly enjoys. Theme song: Greg Allman, " I'm no Angel."
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