Introduction
This article was flagged by DBUNK users after CNN reported that Dick’s Sporting Goods acquired Foot Locker for $2.4 billion, despite Foot Locker’s recent declines in performance and store closures. The story gained traction quickly due to investor volatility, questions about the deal’s financial logic, and speculation about regulatory hurdles. We conducted an in-depth fact-check to verify the key claims surrounding this acquisition.
Historical Context
Dick’s Sporting Goods and Foot Locker are longstanding staples in American retail, each commanding major visibility across sporting and athletic apparel sectors. Over the past decade, both companies have faced increasing pressure from digital commerce platforms and shifting consumer behaviors. Foot Locker, in particular, saw major disruptions due to the decline in mall traffic and changing brand partnerships, while Dick’s has shifted focus by launching house brands and diversifying product offerings. Mergers and acquisitions in this industry often trigger market speculation, which is why this deal drew public and investor attention.
Claim #1: Dick’s Sporting Goods acquired Foot Locker for $2.4 billion
This core claim from the CNN article is accurate. On May 15, 2025, Dick’s Sporting Goods announced the acquisition of Foot Locker in a deal valued at $2.4 billion. The acquisition will be an all-cash transaction, and while details of financing are still expected in a more extensive SEC filing, multiple business outlets including CNBC and Bloomberg confirmed the total valuation aligns with this figure. The deal was presented with the intent to maintain Foot Locker as a standalone brand, while expanding Dick’s presence internationally. Therefore, the claim is credible and substantiated.
Claim #2: Foot Locker has experienced declining sales and store closures
This claim is also accurate. Foot Locker has publicly acknowledged a challenging market landscape over the past two years, particularly impacted by weakening performance in Nike sales and reduced mall foot traffic. According to Foot Locker’s Q4 2024 earnings report, sales were down 5.8% compared to the same quarter in the previous year. Additionally, in 2023, the company announced a planned closure of over 400 stores by 2026 as part of a modernization strategy. The article’s depiction of a sales downturn and attrition in physical locations is supported by the company’s own financial disclosures and broader market trends.
Claim #3: Foot Locker’s stock surged 80% in premarket trading after the acquisition news
This claim is supported by financial data from multiple stock market trackers. Following the announcement of the acquisition, Foot Locker’s premarket shares jumped by approximately 80%. This sharp increase reflects investor optimism, particularly since the purchase price represented a significant premium — around 66% above Foot Locker’s recent stock performance. Public filings submitted to NASDAQ indicate the premium evaluation was accurate as of the last closing price before the deal’s announcement. This validates the surge and stock movement described in the article.
Claim #4: The acquisition may face regulatory scrutiny due to Dick’s dominant position
This claim is speculative, but not false. While no regulatory body has formally moved to block or review the acquisition at this point, antitrust experts maintain that large acquisitions — especially involving companies with extensive overlapping markets — may attract examination. Dick’s currently holds significant market share within U.S. sporting goods and outdoor equipment retail sectors. Combining this with a well-known shoe retailer such as Foot Locker could result in increased dominance in certain regions or product categories. At present, the Federal Trade Commission (FTC) has not made a public comment. Therefore, this is a plausible concern, but not a confirmed risk — indicating the article appropriately presents it as a possibility rather than a certainty.
Conclusion
Our fact-check confirms that the central facts reported in the CNN article are accurate. Dick’s Sporting Goods did indeed agree to acquire Foot Locker for $2.4 billion. Foot Locker’s sales decline and ongoing store closures are real and documented, adding risk to the acquisition. The reported stock surges and investor reactions are supported by official exchange data. However, while the article touches on possible antitrust concerns, it avoids definitive speculation and properly frames regulatory scrutiny as hypothetical. No fabricated information or clear bias was detected — the article presents a factual and balanced report on a major retail acquisition.
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Link to Original Article
Read the original article here: https://www.cnn.com/2025/05/15/business/dicks-foot-locker-acquisition
