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TM/Adidas Split? Early April Fools?!

Alez367

Alez367

Formerly Carlos C.
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Saw this article this morning and it's pretty clear. Not sure if it's 100% accurate but if it is, then this should be an interesting process over the next few months.

https://thegolfnewsnet.com/ryan_bal...ing-adidas-group-start-formal-process-104225/

TaylorMade Golf Company will begin the process of separating from adidas Group, beginning on Friday on the path to becoming two distinct companies.

David Abeles, President and CEO of TaylorMade Golf Company, made the announcement to employees in a video on Thursday night, according to sources who viewed the announcement. The formal separation of the companies begins March 31. The two-step process will begin with the planning of a formal separation and conclude with a divestiture phase. Abeles said both phases should take approximately 90 days to complete, with the processes formally wrapping by Oct. 1.



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I believe this has been in the works for a good while now.
 
Well this looks to be a 1Q announcement so I could see this being true. I wonder who is going to buy TM!


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Sox Fan said:
I believe this has been in the works for a good while now.
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Correct but this now brings in an actual buyer of the division.


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That was a really long piece to say nothing (in my opinion).
And that site has some serious errors going on (Chrome and Safari caused kill or wait things quickly).
 
JB said:
That was a really long piece to say nothing (in my opinion).
And that site has some serious errors going on (Chrome and Safari caused kill or wait things quickly).
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Yeah, it killed mine and I had to close both tabs and start over. What I was going to ask, isn't this what has to happen? It is no secret that Taylormade is on the market and Adidas is a motivated seller. Does this mean they are possibly close to actually having a buyer and need to get this process started?
 
Very possible that someone in the Asian market will buy them out like what happened with Acushnet (I believe it's FILA, and FILA was bought out by a South Korean company). I would love to see an American company pick them up and bring overall management to the US.
 
Haso said:
I would love to see an American company pick them up and bring overall management to the US.
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Who has that much money and can handle the losses or has no shareholders to answer to? ...Parsons? Tiger?
 
I think it's been brewing since two of TM's three biggest names tend to wear a bunch of Nike clothing.
 
Will wait for an official announcement but it's going to remain an interesting follow
 
Anyone buying TM is doing so for the name. I would assume Yes and Adams gets sold for pennies to Dick's or someone like them for a house brand and the name and IP gets sold off piece by piece.
 
aklawitter said:
Who has that much money and can handle the losses or has no shareholders to answer to? ...Parsons? Tiger?
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That's why I think it'll be a SK company that has a huge golfing demographic relative to the population. Sadly golf doesn't seem to be in the interest of the large American sport outfitters. Under Armour could be a potential suitor if they were looking to get into the golf equipment biz.


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Given UA 2016 Fourth Quarter numbers released January, 2017. No chance in Hades UA is getting involved in any golf hard goods.
 
Ravens14 said:
Given UA 2016 Fourth Quarter numbers released January, 2017. No chance in Hades UA is getting involved in any golf hard goods.
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Yikes, probably not.


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Haso said:
That's why I think it'll be a SK company that has a huge golfing demographic relative to the population. Sadly golf doesn't seem to be in the interest of the large American sport outfitters. Under Armour could be a potential suitor if they were looking to get into the golf equipment biz.
Click to expand...

I can see some logic behind someone like an Under Armour to purchase TM but I really don't see that happening. The clothing industry have high profit margins but definiatly not so in the golf industry. Any purchaser would have their ROI plummet and that the shareholders wouldn't take too kindly to that. TM is simply loosing too much money every year. Trying not to be a pessimist, but I don't see a very bright future to TM unless Adidas sells them in a fire sale to get them off their books.
 
I don't see any chance UA would buy TM. UA is trying to keep the doors open right now. Adding TM could and probably would sink them. Some of the rumors I've heard about UA lately show they are close to desparation. They substantially lowered quality while raising prices and it is catching up to them. They also won't have anything to do with creating a line for the corporate world. They say they don't need those sales...We can see how that's working for them
 
Nothing new based on rumors. I wonder how this will all turn out?
 
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