Which anecdote about Donna Karan's brand from before it went public stood out most to you as a reason the company might not be successful when publicly traded?

The two articles posted discuss two acquisitions of Donna Karan- first by luxury conglomerate LVMH and then by G-III who is known for licensing deals. How do you think these two acquisitions differed? What do you know about mergers and acquisitions (M&A) and licensing? What questions do you have about these types of brand ownership and management?

Choose two reasons below you believe Donna Karan has failed to maintain status as a luxury brand. Why?

Uncontrolled distribution Diminished status from non-luxury products Lack of creativity in the core product Shareholders who prioritize financial short-term returns Market pressures

9/3/2021. LVMH Completes Donna Karan Deal - The New York Times The New York Times https:/www.nytimes.com/2001/11/28/business/vmh-completes-donna- karan-deal.htmk LVMH Completes Donna Karan Deal By Bloomberg News~ Nov. 28, 2001- See the article in its original context from November 28, 2001, Section C, Page 11 Buy Reprints~ VIEW ON TIMESMACHINE- TimesMachine is an exclusive benefit for home delivery and digital subscribers. LVMH Moet Hennessy Louis Vuitton, the maker of luxury goods, said yesterday that it had completed its acquisition of Donna Karan International Inc. for $243 million in cash and assumed debt. LVMH CEO Bernard Arnault's mantra is there's no such thing as a bad brand, just bad brand managers, according to the analyst. The few divestments LVMH has made in past years have been Ebel watches and Christian Lacroix fashion. LVMH also disposed of a minority stake in Hermes International SCA after the French rival dodged its hostile advances. G-III said it expects the acquisition to weigh on profit in the fiscal year through January 2018, and boost earnings from then on. The New York-based company is taking on debt to fund the purchase. The companies said they expect to complete the transaction by early next year. Barclays Plc advised G-III. Related Articles: Report: LVMH to Sell Off DKNY Donna Karan's Departure No Surprise