• Dick's Sporting Goods agrees to acquire Foot Locker for $2.4 billion.
• Foot Locker shareholders can choose cash or shares in the new deal.
• The acquisition aims to expand Dick's footprint internationally.
• Foot Locker has struggled financially amid changing retail dynamics.
• The deal is expected to close in the second half of the year, pending approvals.

Dick's Sporting Goods plans to purchase Foot Locker for approximately $2.4 billion, marking the second major footwear buyout this month. The deal aims to help both companies navigate an uncertain retail landscape influenced by recent tariffs from the Trump administration, which have impacted consumer spending patterns across various sectors, including footwear, according to CBS News, Reuters, and SFGate.

The acquisition is strategic for Dick's as Foot Locker operates about 2,400 retail locations across 20 countries, providing Dick's a foothold in international markets and the opportunity to capture a broader customer base, especially among sneaker culture enthusiasts. The deal includes an offer of $24 per share for Foot Locker, which represents an 86% premium over its last trading price. Despite the potential upside, Dick's shares fell by over 10% following the announcement, reflecting investor concerns about Foot Locker's declining sales and restructuring challenges, according to NPR and SFGate.

Foot Locker has faced significant challenges as a mall-based retailer in recent years, reporting a 40% drop in its stock value this year. The company, which generated $8 billion in global sales last year, is venturing to improve its market position through closer collaborations with brands like Nike. Dick's CEO Lauren Hobart emphasized the potential for creating "a new global platform" that caters to diverse customer needs, according to CBS News and Reuters.

The acquisition is anticipated to close in the second half of the year, pending approval from shareholders and regulatory bodies. Analysts believe that this merger will not only boost Dick's market presence but also enhance its negotiating power with national brands, significantly impacting the sporting goods landscape, according to SFGate and NPR.