Just Do It!

The latest craze of foreigners buying second-rate American companies continues. Now, the Germans have gotten into the act. Adidas Salomon will annex Reebok for $3.8 billion.

The claim is that this is a move to compete with Nike. I’m sorry, but they’re worried about this now! You’re at least a decade too late. Over the last 18 years, Reebox’s stock is up 184%. Nike’s stock is up 3,300%. Is Nike supposed to be scared now?

All the top athletes are with Nike (Tiger Woods, Lance Armstrong). In fact, Nike is even moving into Adidas’ traditional territory of soccer. The Wall Street Journal notes:

Nike has signed up prominent European soccer teams such as Manchester United and Arsenal. More broadly, Nike has been in acquisition mode, diversifying beyond its core of running and basketball shoes to buy brands such as Converse, Cole Haan and Official Starter Properties.

Posted by on August 3rd, 2005 at 4:24 pm


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