Phil Knight's net worth jumps $1.9B after Amazon deal.
Nike has officially announced its partnership with Amazon, which will allow the brand to "elevate the way the brand is presented" by gaining more control over how its products are marketed on the site, according to CEO Mark Parker.
"We're in the early stages but we really look forward to evaluating the results of the pilot," Parker said.
“We’re really looking forward to seeing how this pilot combines, ultimately, the convenience that Amazon is well known for with Nike’s brand and product power,” Parker added.
As of now, it's unclear just how much more Nike merch will ultimately be sold via Amazon, but the deal is expected to dramatically impact the counterfeit sneaker market.
According to Bloomberg,
"The approach lets Nike Inc. take greater control over how its products are sold, helping ensure that knockoff shoes aren’t offered by third parties on the e-commerce marketplace, said the person, who asked not to be named because the arrangement isn’t yet public."
While this new partnership is a great way for Nike to ensure that their customers get authentic products, it will damage their retail partners like Foot Locker and Finish Line. The stocks of boths companies have already dropped in wake of today's news.
For instance, Bloomberg reports that Foot Locker Inc. plunged as much as 11%, while Finish Line Inc. and Dick's Sports Goods Inc. fell 5.9%, and more than 9%, respectively.
On the flip side, Nike co-founder Phil Knight watched his net worth climb an extra $1.9 billion as a result of the Amazon partnership.