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Prada Seizes Versace In $1.4 Billion Power Play

by News Editor

April 11, 2025

Prada has secured a $1.38 billion deal to acquire Versace from Capri Holdings, uniting two of Italy’s most iconic fashion houses. The move positions Prada for accelerated growth while offering a much-needed lifeline to Versace, which has struggled with losses in recent quarters, according to Reuters.

Key Takeaways

Strategic Expansion: Prada is capitalizing on its resilience amid a luxury market slowdown, while Versace’s financial struggles made it an opportune target.
Brand Synergy: Versace’s bold, baroque aesthetic will complement Prada’s minimalist heritage, broadening its appeal.
Italian Power Move: The acquisition strengthens Italy’s presence in a luxury landscape dominated by French giants, led by LVMH.
Market Risks: Prada and Capri pushed forward despite uncertainty over U.S. tariffs and economic volatility.
Capri’s Shift in Focus: The U.S. company reportedly pulled back on Versace investments to prioritize its core Michael Kors brand.
Prada’s Growth Strategy: Prada aims to fuel expansion as its existing brands, including Miu Miu, mature.

Prada CEO Andrea Guerra emphasized that the acquisition is a long-term strategic play focused on revenue growth rather than cost-cutting. “We will provide Versace with a strong platform, reinforced by years of ongoing investment and rooted in long-term relationships,” said Prada President Patrizio Bertelli.

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Behind The Deal

Prada’s purchase price—factoring in Versace’s debt—represents a significant markdown from the $2.15 billion Capri paid in 2018 when it acquired the brand from the Versace family and Blackstone. Prada first explored the deal last year after Capri’s planned sale to Tapestry (owner of Coach and Kate Spade) stalled due to antitrust scrutiny, sources said.

The $1.4 billion valuation remained steady through negotiations, and Prada will finance the acquisition with €1.5 billion in new debt. The deal is set to close in the second half of this year.

What’s Next

The acquisition signals a strategic shift under Guerra, who took over from Patrizio Bertelli and Miuccia Prada two years ago. It also underscores the rising influence of their son, Lorenzo Bertelli, widely seen as Prada’s future CEO.

Founded in 1913 as a Milanese leather goods store, Prada has evolved into a global powerhouse, expanding aggressively under Miuccia Prada and Bertelli. Meanwhile, Versace—best known for its Medusa-head logo—remains one of fashion’s most recognizable names, shaped by Donatella Versace after her brother Gianni’s tragic murder in 1997.

With Prada’s backing, Versace is poised for reinvention. Whether it will reclaim its former glory remains to be seen—but one thing is certain: Italian luxury just got a whole lot stronger.

The Future Forbes Realty Global Properties

SoftBank Shares Tumble Amid Tech Profit Taking And High-Risk AI Investments

Market Sell-Off And Profit Taking

SoftBank Group’s share price plunged over 11% following an overnight sell-off in the U.S. market, as broader profit taking in the technology sector weighed on investor sentiment. Major Asian technology players, including TSMC and Foxconn, experienced similar declines, reflecting a cautious approach among investors despite recent gains.

High-Stakes AI Investments

Despite this short-term volatility, SoftBank’s year-to-date share price surge of approximately 70% is largely fueled by robust investor enthusiasm around its high-risk bets on artificial intelligence. Concerns persist over these aggressive investments, even as the market continues to rally on the promise of AI-driven returns.

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Global Technology Landscape

In the broader market, South Korean giants such as Samsung and SK Hynix witnessed modest declines of 1.25% and 2.75%, respectively, following profit taking after surpassing key market valuations. Similarly, overnight in the U.S., semiconductor leader Nvidia fell 3.62%, while Alphabet and Amazon saw declines of 0.79% and 2.5%, respectively.

Long-Term Vision Versus Short-Term Focus

SoftBank CEO Masayoshi Son has been vocal about the transformative potential of artificial intelligence, predicting that the AI revolution could be 50 times larger than the dot-com boom of the 2000s. However, as noted in a recent investor note by Deutsche Bank analyst Peter Milliken, market enthusiasm appears narrowly fixated on short-term momentum rather than a detailed long-term roadmap.

Strategic Asset Reallocation

Adding another layer to the unfolding narrative, SoftBank recently divested a 3.25% stake in Indian eyewear maker Lenskart through its affiliate SVF II Lightbulb (Cayman). The transaction, which involved selling 56.5 million shares at 508.55 Indian rupees each (approximately $5.32 per share), valued the deal at nearly 28.73 billion rupees. Following the sale, SoftBank’s shares traded at 7,377 yen, marking an 11.3% drop.

This dynamic environment underscores the challenges of balancing aggressive, innovation-driven investments with the need for prudent risk management in volatile markets.