By CultureBanx Team
- LeBron James’ “Ladder” company has been acquired by OpenFit
- Ladder is on pace to reach $4M in sales for 2020
Ladder, a nutritional company founded by LeBron James and Arnold Schwarzenegger, has been sold to the technology fitness platform Openfit. James and Schwarzenegger will stay on as minority shareholders and help with future promotional content. OpenFit claims to have approximately 130,000 subscribers, and with the acquisition of Ladder which is on pace to reach $4 million in sales for 2020, could an IPO be on the horizon?
Why This Matters: James was among a group of athletes and celebrities who joined together to start Ladder in 2018. The Los Angeles Lakers star helped develop the idea for the company after his infamous cramping incident during Game 1 of the 2014 NBA Finals. His Ladder’s company integration into the Openfit platform aligns with the brand’s ongoing strategy of offering a comprehensive and personalized solution to fitness, nutrition and wellness direct to the consumer. Additionally, it will also provide significant opportunities to expand Ladder’s reach.
As for an IPO, OpenFit’s CEO told CNBC all possibilities are open for us
“Now with the reach and resources of the Openfit platform, we’re excited about bringing this all together and creating a new level of training and nutrition that fits everyone’s individual needs,” James said in a statement.
OpenFit purchased Ladder, buying shares from investors, including investment firm Main Street Advisors. Terms of the deal were not made available. Right now, OpenFit’s mobile application monetizes private training and exercise classes through subscriptions. The packages range from roughly $40 for three months to $100 per year.
What’s Next: As for an IPO, OpenFit’s CEO told CNBC “all possibilities are open for us, and we’re considering all possibilities.” The company expects “300% to 400% growth at a minimum next year and even more than that in the coming years,” and hopes that Ladder is a huge part of its revenue base moving forward.
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