Tuesday, October 09, 2007

Nike not set for much return

Nike would wind up paying a frothy $395 million (U.S.) for Canstar, a 50 per cent premium above the level its shares were trading in prior months.

Industry executives now say even though a number of suitors will probably emerge for NikeBauer, it's doubtful the division will sell for more than $150 million – less than half what Nike originally paid for it.

Nike said its hockey unit posted sales of about $160 million a year ago, and several industry officials said they estimate the division generated a profit of $20 million.


At 3:39 p.m., October 09, 2007, Anonymous penaltyshots.ca said...

Frankly, Nike quitting hockey is a serious blow to the NHL.

Let's face the facts. No one does sports marketing better than Nike. Whether you liked their products or not they probably grew the NHL more in the U.S than a lot of other entities. They would have been a solid partner going into the future and their loss dims the prospect of the NHL's victory over the U.S fanbase.


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