Apple's Tim Cook doubles Nike stake with $3M stock purchase
What's the story
Apple CEO Tim Cook has made a major investment in Nike, buying 50,000 Class B shares at $58.97 each for about $3 million. The move nearly doubles his stake in the company to just over 105,000 shares worth around $6 million. Cook's investment coincided with a 4.64% surge in Nike's stock at Wednesday's close. The move is seen as a show of faith in CEO Elliott Hill and his strategies to turn around the struggling sportswear giant.
Strategic shift
Nike's recovery plan and recent challenges
Hill rejoined Nike as CEO in October last year, taking over a company that was struggling against smaller competitors. His "win now" strategy focuses on culture, product, marketing, marketplace, and in-person presence. However, the road to recovery has been bumpy with a major sales drop in China during its second-quarter earnings report last week.
Board membership
Cook's long-standing association with Nike
Cook has been on Nike's board of directors since 2005 and has often supported the company through major strategic decisions. He was seen wearing a pair of custom Nike Vomero Plus sneakers at an Apple store reopening in Tokyo earlier this year. The shoes were designed by Sashiko Gals, an artisan division of Japanese brand Kuon.