Quiksilver makes a move on Billabong
Surf industry observers have been enjoying the ongoing do-si-do between the former BIg 3 surf companies. It's been nothing if not entertaining.
A month ago it was rumoured Billabong were planning to buy Rip Curl, while Billabong and Quiksilver share majority shareholders, and now news has arrived that Quiksilver has made an offer on Billabong.
Strictly speaking the offer came from Boardriders Inc., the trading name for Quiksilver and Roxy, but that's mere sharemarket semantics, if the offer were to be accepted the two companies would be sharing the same stable.
Five years ago the Big 3 struggled to share a world tour, each contest was owned and run by a company who roundly ignored the others. Now the former titans are reluctant playmates.
The offer proposes that Boardriders acquire all of the shares in BIllabong, other than those already owned by Boardriders' related entities, at a price of $1.00 per share. Prior to the offer Billabong's share price was $0.78. It's since risen to $0.95 on the news of the offer.
Billabong has granted due diligence access to Boardriders, a process that's likely to take a number of weeks.
Meanwhile, the music continues playing.
Comments
So Quikbilly or Bongalong?
Rip Quik Bong, Hurl(ey)
Nice one velocity
There's been some dross . But I'm Pretty sure it was 2003 when surf clothes reached their rock bottom.
Those loooong boardies with Metallica and shit on them . The T shirts and dress shirts with lyrics and nonsensical dribble literally scribbled across them in odd places.
Uggghh.
If you absolutely HAD to wear surf clothes from any period for the rest of your life then you'd be ok in an understated brown golden breed jumper and some wrangler jeans , I guess.
MR's shorts in that other thread took a bit of mojo to pull off. But he did drive a silver Porsche and rocked a superman logo on his wetties. Bold move , Mr Richards.
? Just one simple question, why ?
I was gonna say it's about buying more market share at a time of historic low interest rates (like, 5000 year lows), but looking a bit deeper, it's more like Fiat-Chrysler or Nissan-Renault where they merge and spread platform costs, in the former case it happened at a time when the US auto industry was not the healthiest. I haven't looked thru their figures or taken time to understand their market positioning tho.
That Nissan Renault mix gave us the Jap styled 4x4 with the euro built motor that wasn't the most durable-est - in any sane universe the correct order is the reverse of this.
@ vjohno, thanks! Have you ever read the book
Off the record. By Craig Gordon .
It's a very interesting read. He was the head of marketing at Berkeley University. Breaks down all the above mergers and acquisitions. Explains company Shelf life and so many other things. Very interesting read. I recommend.
Speaking of good books, has anyone seen the new Surfers Journal ? @ Stunet. Nice one :)
Ha....cheers LD. I haven't seen it myself but heard they did a nice job of it - layout, pics, etc
Another Jem ! #Milestones.
will be interesting to see when Oaktree buy BBG , whether the rumors are true they will then Move Q/S to BBG HQ building at Burleigh , giving their workers the ultimatum of moving or quitting ?
What do you reckon , Brutus ?
Good thing or bad thing for Torquay ?
Less jobs in town ....but maybe less surfers too.
As long as they don't move Billabong to Torquay. The last thing we need is a bunch of hassling SE Queensland surfers paddling inside everyone and thinking the next set is their's.
I thought paddling up the inside was just standard procedure on the surf coast regardless of where your from VL
You have blatantly snaked me plenty of times. But as a blowin with a healthy respect for the elders I never had a tanty. I would probably let you do it at my local here in Nz.
Ha Ha inzider. You'll have to tell me which break I snake people at!!! The five minute "locals" are the worst offenders. Can you imagine how bad it would be if the BBG crew brought their Snapper attitude down?
PS looking forward to working with you at Raglan bru.
The bowl at bells and winki VL.
Technically speaking you didn't really snake me you just knew you could make it from deeper up the reef.
I don't live in Raglan either I'm a bit further south. Too crowded for my liking.
Bad thing if you worked all your life there , have family etc , and nothing will stop the next wave of local surfers in Torquay , as there is 100K more residents planned , so losing Quik , would have pretty severe ramifications for workers , but imagine the money saved for Oaktree!
Interesting tweet from Rob Mills at Gemba (https://twitter.com/Millsyrob).
"In Australia @billabong1973 dominate #surf sponsorship share of mind"