Whispers have been floating around for awhile now, but it appears likely that Nike Inc. will acquire Under Armour Inc. According to the London Times, Nike has been considering a takeover bid to for several months. Posing significant financial advantage to Nike’s already impressive subsidiary umbrella, a deal could also mean substantial expansion to Under Armour’s relatively small international business. Closing out Thursday with a share value of $76.82 USD, the newspaper suggests that Nike may be prepared to offer upwards of $100 USD per share for the Baltimore, Maryland based athletic brand. While substantive information is still forthcoming, many analysts and periodicals have already begun to debate the logic and repercussions of a Nike/Underarmour takeover scenario. Nike may become over-saturated, whereas Under Armour may be left with a bruised ego.
Stick Tap: WWD
I can not find this report on London Times! It would be nice to have a link to the actual article on London Times…Please post!!!
[…] anyone think this will actually happen? The Globe and Mail believes the rumors enough to do a stock analysis. […]