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Nike is in talks with LeBron James and Maverick Carter about a potential acquisition of their entertainment company, SpringHill Co. According to Bloomberg News, talks between Nike and SpringHill are in the early stages:
The discussions are at an early stage, said the person, who asked not to be identified because the deliberations are private. The Information website previously reported on the sale talks, saying the company could fetch as much as $750 million in a deal. But the discussions also could lead to an investment rather than a sale.
SpringHill is behind James’ upcoming Space Jam film and HBO’s The Shop: Uninterrupted. The Information also recently gave SpringHill a $750 million valuation.
James formed SpringHill Co. last year with his longtime business partner Maverick Carter after raising $100 million. The company includes marketing agency Robot Co. and the entertainment firms SpringHill Entertainment and Uninterrupted.
A source told Bloomberg that talks between SpringHill and Nike occurred because of an industry-wide scramble to acquire content at a time when streaming services “face soaring demand for programming.”
It’s unclear which other companies plan to bid against Nike for an acquisition of SpringHill. Nike has been a partner of James’ for nearly 20 years. In 2016, James inked a “lifetime” contract with Nike, which Carter hinted was worth north of a billion dollars. Translation: Nike is the frontrunner.
Plus, selling SpringHill to Nike would help LeBron James’ efforts to keep Xi Jinping smiling. Am I wrong?