Versace, Versace, Versace!
Michael Kors is buying Versace… not the other way around in another deal with two HUGE names in play. Michael Kors is getting close to purchasing Versace for $2 billion. The two sides are so close that the deal could be announced this week (but you heard it here first!).
The famous ‘MK’… already owns 20% of Versace and the Versace family owners the other 80%. This move is right in line with Michael Kors strategy of improving its luxury brand offerings. The company bought Jimmy Choo last year for $1.2 billion. However, investors are less impressed by these deals and shares of MK dropped by 7% on Monday.
Ordinary people don’t buy Versace… because most people aren’t famous, rich, or cool enough to pull it off. For that reason, some even think that the MK should give the Versace brand a more modern appeal. And while the new brand won’t add much to the Michael Kors brand, it could give the company a boost in parts of the market it doesn’t already reach. We wonder what the Migos think about all of this? Versace, Versace, Versace…