Adidas Buying Reebok For $3.8 Billion

Sporting-goods manufacturer

Adidas has announced its will buy out rival Reebok, in a deal worth a reported

$3.8 billion.

Adidas is ranked at number two behind Nike in the sporting-goods

industry, with Reebok in third.

“This is a once-in-a-lifetime opportunity to combine two

of the most respected and well-known companies in the worldwide sporting goods

industry,” said Adidas-Salomon Chairman and CEO Herbert Hainer.

With the acquisition, the collective company would corner 20%

of the U.S. athletic-shoe market, positioning themselves as leading competitors

with Nike.

Both companies have numerous celebrity endorsers and event deals.

Reebok counts Jay Z, Nelly and 50 Cent among their famous names, while Adidas

has held a long-standing tradition in the hip hop community, starting with pioneers

Run-D.M.C. to recently acquired spokesperson Missy “Misdemeanor”

Elliot.

According to figures released by Reebok, footwear products endorsed

by Jay-Z and 50 Cent helped the company doubled fourth quarter earnings over

the previous year.

The proposed merger is still contingent upon approval of shareholders.

“Together,

we will expand our geographic reach, particularly in North America, and create

a footwear, apparel and hardware offering that addresses a broader spectrum

of consumers and demographics,” Hainer said.

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