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September 16, 2011

Under Armour - Nike buyout rumors sound bogus

Edward Ericson at the City Paper has a complete summary, inclutding the requisite skepticism, of the based-on-nothing Web reports that Nike might buy Under Armour.

There are many reasons why a Nike-UA deal is not going to happen. But here is the main one: Founder Kevin Plank owns 24 percent of Under Armour's shares. His brother Scott owns another 5 percent. The company is totally kicking butt. Nike is UA Enemy No. 1. Why on earth would the Planks sell out. To anybody? But especially to Nike?

Under Armour is doubling the size of its Baltimore headquarters, Jamie Smith Hopkins reports in today's paper. That does not sound like a company about to sell out to a competitor.

Posted by Jay Hancock at 9:05 AM | | Comments (4)
        

Comments

YES! I agree wholeheartedly with this --

EVEN if they were to sell, it would have to be for a stock price of 300+ with the type of growth I'm expecting from them.

Good stuff Jay,

Arsham

Maybe Nike is making them an "offer they can't refuse"?

I didn't read the referenced article, but I can't imagine this would be good for UA's apparel licensing with sports leagues either, especially the NFL (since Reebok has the shoe deal, I believe).

Entrepreneurs get bored with the day to day operations after a time. 24% brings a lot of moolaa. The Planks are big time sports enthusiasts. If the right franchise opportunity came up might they sell and pursue their passion? Too bad they don't like baseball. Then again, the Rams and Bucs are rumored to be available and relocating one of the two after buying it could lead to a lot of opportunity, especially if the relocation was to LA. Imagine what that might bring to a couple smart, sports saavy guys!

UA is my favorite stock because I live in Baltimore and worked with workers who I am helping with. The speed of the growth of UA is incredible. And the wonderful company is expending at a speed of you cannot believe it. I could watch the situation of the company through my fellows plus my brother and his wife are working there 7 days a week!!! It is too cheap right now although I missed when the price of UA reached $55 per share as I was careless about the wonderful company hiding in my very eyes. I could have bought when it was $33 per share. I do not care whether or not Nike is buying the UA because I know about the company, I could see the growth of the company, and I know about the situation of workers there. I can keep UA stocks without sleepless night because it will bounce up around 65 and is going to shoot as their earning statement is released on October 24th. I think we will have to pay $85 per share at least. Good luck!

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About Jay Hancock
Jay Hancock has been a financial columnist for The Baltimore Sun since 2001. He has also been The Baltimore Sun's diplomatic correspondent in Washington and its chief economics writer. Before moving to Baltimore in 1994 he worked for The Virginian-Pilot of Norfolk and The Daily Press of Newport News.

His columns appear Tuesdays and Sundays.
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