Adidas AG
Sportswear and athletic apparelFounded 1949- Updated June 2026
Reviewed by Swet Parvadiya
Last reviewed: June 2026
CorpDigest
Adidas AG
Company History
Founded 1949 in Herzogenaurach, Germany
Last reviewed: 2026-06-03 · By Swet Parvadiya
Adidas AG traces its origins to 1949, when Adolf Dassler registered the company in Herzogenaurach, Germany after splitting from his brother Rudolf (who founded Puma). Adidas and Puma were both founded there because Adolf and Rudolf Dassler, brothers who had built a shoe business together since the 1920s, had a falling-out so severe that it divided not just their company but the entire town — residents chose sides, and the rivalry between the two firms shaped Herzogenaurach's social fabric for decades. Adolf and Rudolf Dassler started making athletic shoes together in their mother's laundry room in Herzogenaurach in 1924.
Adolf Dassler founded Adidas in 1949 after the family business with Rudolf Dassler collapsed into one of the most famous rivalries in consumer history. His specific contribution was not only the brand name but the operating philosophy: build shoes around the needs of athletes, test ideas in competition, and let performance proof drive reputation. Dassler's screw-in stud concept became associated with West Germany's 1954 World Cup win, giving Adidas a commercial story rooted in a visible sporting outcome. He maintained close relationships with athletes and coaches, making product feedback central to the company long before modern sports science departments were common. After Adidas became global, his influence remained visible in football boots, track shoes, and the company's belief that technical credibility should precede lifestyle branding.
Rudolf Dassler did not found Adidas as a separate legal entity, but his role in the earlier Dassler Brothers business makes him part of the Adidas origin story. His sales instincts and operational involvement helped the brothers' shoes gain early visibility before the 1949 split. After the break, Rudolf founded Puma, creating a direct competitor across town from Adidas and turning Herzogenaurach into a divided sportswear capital. His departure forced Adolf Dassler to sharpen Adidas's identity around product engineering and athlete relationships rather than family partnership. Rudolf's lasting influence is therefore indirect but powerful: Puma's presence kept Adidas under competitive pressure, and the rivalry pushed both companies to invest in sponsorships, football credibility, and faster product innovation.
Adidas acquired Reebok to strengthen its position in North America, where Nike had built a much larger cultural and commercial advantage. The deal was meant to add U.S. Fitness credibility, basketball relationships, retail access, and a second global brand that could broaden Adidas's portfolio beyond football and European performance heritage.
Adidas acquired TaylorMade as part of a broader move into golf equipment and premium sport categories. The logic was to combine Adidas apparel and footwear expertise with a specialist golf equipment brand that had credibility in clubs, balls, and professional tours.
Adidas acquired Five Ten to strengthen its outdoor and action-sports footwear portfolio. Five Ten brought Stealth Rubber technology and credibility in climbing, mountain biking, and approach shoes, areas where Adidas could use specialist authenticity.
Adidas acquired Runtastic to build a stronger digital fitness and running relationship with consumers. The acquisition gave Adidas app capabilities, activity data, and a platform for engaging runners outside the purchase moment.
Rudolf and Adolf Dassler co-founded Gebrüder Dassler Schuhfabrik in 1924 but had a bitter falling out during and after World War II — accounts cite personal, political, and business disputes. In 1948, they split the factory: Adolf kept the main operation and renamed it Adidas (combining 'Adi' and 'Das' from his name) while Rudolf founded Puma. The brothers never reconciled, and their feud divided their hometown of Herzogenaurach, Germany for decades.
After Adolf Dassler's death in 1978, adidas was managed by his widow and children but struggled through the 1980s against Nike and Reebok's marketing-driven rise. French businessman Bernard Tapie acquired adidas in 1990 for 1.6 billion francs but nearly bankrupted it again. French investment bank Crédit Lyonnais forced a restructuring, and Robert Louis-Dreyfus purchased the company in 1993 and modernized its marketing, hiring celebrities and sponsoring major sports events that rebuilt the brand.
Adidas acquired Reebok in 2006 for $3.8 billion to gain scale in North America, where Reebok had strong positions in NFL, NBA, and fitness categories. The combined company aimed to challenge Nike's dominant US market share. However, integration challenges, brand confusion, and Reebok's declining appeal meant adidas eventually sold Reebok to Authentic Brands Group in 2021 for approximately $2.5 billion — a significant loss relative to the purchase price.
Adidas terminated its Yeezy partnership with Kanye West in October 2022 after he made antisemitic statements, costing the company approximately €250 million in net income in 2022 alone. The company was left with €1.2 billion in unsold Yeezy inventory. Adidas eventually sold the remaining Yeezy stock in phased releases (2023-2024), donating a portion of proceeds to anti-discrimination organizations, and recovered faster than analysts expected.
Adolf Dassler outfitted the West German national team with screw-in studded boots before the 1954 World Cup final — a technology advantage credited with helping Germany defeat Hungary on a muddy pitch. Earlier, adidas supplied Jesse Owens with track shoes at the 1936 Berlin Olympics. These high-visibility sporting moments established adidas's technical credibility and association with elite athletic performance decades before modern sports marketing existed.