Rumor: Nike to Purchase Lululemon
- Updated: June 13, 2013
BREAKING: Benzinga is reporting that it’s hearing unconfirmed reports that Nike might make an $80 per share offer for athletic apparel company Lululemon.
Although the rumor is unconfirmed and doesn’t appear to be moving the stock at this time, it’s hard to argue that it wouldn’t make sense for Nike. (NYSE: NKE)
In what resembles Google’s (NASDAQ: GOOG) purchase of Waze this week, sometimes it’s better to purchase your competition than go head-to-head. Lululemon (NASDAQ: LULU) has taken the athletic apparel space by storm lately. What was a small company that was in the yoga space has become a household name and continues to grow. The stock is down 14 percent on the year after a large-scale selloff when it was announced this week that CEO Christine Day was leaving.
Disclosure: At the time of this writing, Tim Parker had no position in the above mentioned companies.
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