Dick's Sporting Goods To Purchase Foot Locker For $2.4B

Is Foot Locker Inc. broke?




While we don't know the answer to that it certainly seems that way as CNBC is reporting that Dick's Sporting Goods is purchasing the sports retailing stable for a cool $2.4 billion in a shocking move that has many sneaker aficionados scratching their heads. Why would Dick's Sporting Goods go this route? Why would Foot Locker Inc. throw in the towel this far into the game? How will this affect sneaker raffles and resale prices?




While there are many questions to be answered behind this surprising market move, according to CNBC, Dick's Sporting Goods decided to buy out the competition to expand their global presence and corner the Nike market. That being said, Trump's announcement of his idiotic tariffs didn't help the struggling sneaker game. Foot Locker CEO Mary Dillon saw an opportunity to lighten her load as everyone knows that tumultuous times are ahead for the sneaker market.




Per CNBC:




In a joint press release, Dillon said the acquisition is a "testament" to all of the work her and her team have done to improve the business.




"By joining forces with DICK'S, Foot Locker will be even better positioned to expand sneaker culture, elevate the omnichannel experience for our customers and brand partners, and enhance our position in the industry," said Dillon.




The CEO added she was "confident this transaction represents the best path for our shareholders and other stakeholders."




At the end of the day it's all about the money and investments made by the higher ups.




While many people assumed that Foot Locker was the bigger brand compared to Dick's Sporting Goods, it actually turns out that DSG raked in $13.44 billion in their last fiscal year compared to Foot Locker's $7.99 billion. Who would've guessed?




Still, this is cause for celebration for the good people over at Dick's Sporting Goods as they see nothing but good times ahead:




"We look forward to welcoming Foot Locker's talented team and building upon their expertise and passion for their business, which we intend to honor and amplify together," said Dick's CEO Lauren Hobart. "Sports and sports culture continue to be incredibly powerful, and with this acquisition, we'll create a new global platform that serves those ever evolving needs through iconic concepts consumers know and love, enhanced store designs and omnichannel experiences, as well as a product mix that appeals to our different customer bases."




Should be interesting to see how this affects sneaker raffles and stock numbers per store going forward.




What do y'all think about Dicks Sporting Goods purchasing Foot Locker? Let us know in the comments section below.



via: https://hiphopwired.com/2709508/dicks-sporting-goods-to-purchase-foot-locker-for-2-4b/