With great sadness, I've set aside my glossary of skateboarding terms. Now that France's conglomerate PPR has made a $608 million bid for Volcom
There's plenty of precedent for big companies swallowing subculture brands. Vans, a favorite brand among skaters, is owned by VF
I can't help remembering acquisitions that tarnished or diluted brands, rather than making businesses any better. Talbots'
If any Volcom shareholders share my bittersweet feelings, perhaps they're soothed by the premium price PPR plans to pay. Volcom's directors have agreed to sell out at $24.50 per share. Whether Volcom can retain its authenticity among fickle youth will be PPR's problem now.
I always considered Volcom more authentic than, say, Hot Topic
Still, longtime Motley Fool Hidden Gems pick Volcom had a hard time maintaining its indie ways, especially in the last couple of economically difficult years. Its sales have slowed considerably since the heady times when it was known to report 20% to 40% annual revenue gains, and earnings have declined considerably since its peak $1.37 earnings per share in 2007.
Acquisitions, even at premium prices, always make me wonder what the future could have been. For those who invested in Volcom at its lows, the stock's a winner right now. Just try not to think about what the company might have lost in the process.
Alyce Lomax does not own shares of any of the companies mentioned. For more on this and other topics, check back at Fool.com, or follow her on Twitter: @AlyceLomax. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool's disclosure policy will pull off that frontside ollie 180 or die trying.