Master P is in reported talks to expand his empire. The No Limit Records founder and former NBA player, Baron Davis, are negotiating an acquisition of Reebok, in what could be a multi-billion dollar deal.
“These companies have been benefitting off us, this could be history for this company going Black-owned,” P told ESPN according to a tweet from reporter Eric Woodyard on Monday (Dec. 28).
Percy “Master P” Miller confirms to ESPN that he’s in negotiations to acquire Reebok with ex-NBA guard Baron Davis.
“These companies have been benefiting off us, this could be history for this company going Black-owned,” Miller tells ESPN.
— Eric Woodyard (@E_Woodyard) December 28, 2020
If the deal goes through Reebok would become the first Black-owned major sneaker company. Adding Reebok to his portfolio could end up being a power move for P who has been a vocal proponent of Black ownership. Besides launching his own record label in 1991, P has ventured into apparel and sneakers, sports management, film, and launched his own line of food and cleaning products.
Davis, who played 13 seasons with the NBA, was an early investor in Vitaminwater, and recently invested in Kit Super Coffee, founded by fellow former basketball player, Jordan DeCicco.
Reebok, which is owned by Adidas and valued at $2.4 billion, has failed to consistently turn a profit over the last several years.
Earlier in the month, Adidas announced plans to “assess strategic alternatives for Reebok,” which includes “a potential sale.” Adidas hasn’t ruled out keeping the company, but will announce a decision on March 10, 2021.
Adidas acquired Reebok for $3.8 billion in 2005. Despite implementing a a successful “turnaround plan” that “significantly” improved Reebok’s profits (thanks in part to celebrity partnerships with Cardi B, Khalid, and Ariana Grande), the brand has struggled with revenue. Reebok saw a 42% dip in profits in the second quarter of 2020, according to Footwear News. Meanwhile, Adidas’ overall Q2 loss totaled more than $300 million.