Nike Sells Digital Product Subsidiary RTFKT in December 2025

Nike has sold its digital products subsidiary RTFKT in December according to reports. The sale became effective on December 16, 2025, but details such as the buyer and terms have not been disclosed as reported. The acquisition of RTFKT occurred in 2021 under then-CEO John Donahoe, who focused on expanding Nike's digital presence as documented.

RTFKT had previously announced in 2025 that it would wind down its Web3 service operations. The decision to sell the subsidiary now reflects a strategic shift within Nike under current CEO Elliott Hill according to analysis. Nike emphasized in a statement that the sale marks the beginning of a new chapter for the company and its community as stated.

Nike stated it continues to invest in innovative products and experiences across physical, digital, and virtual environments as reported. The company has maintained partnerships with video game developers to create virtual wearables, including collaborations with Fortnite and EA Sports as detailed.

Why Did This Happen?

Nike's decision to divest RTFKT aligns with CEO Elliott Hill's broader strategy to refocus on core sports products and rebuild partnerships with key wholesale retailers according to analysis. This move follows a challenging period for Nike, including a significant decline in Converse sales and ongoing efforts to streamline operations as reported.

The sale also comes as Nike navigates a legal dispute with an investor who filed a lawsuit after RTFKT announced its shutdown. Nike has since filed a motion to dismiss the case as noted.

What Are Analysts Watching Next?

Analysts are closely watching how Nike will balance its digital and physical product strategies moving forward according to reports. The sale of RTFKT raises questions about the future of Nike's virtual product initiatives, particularly in the gaming and NFT spaces as analyzed.

Investor sentiment is also focused on Nike's broader business performance, including the fate of the Converse brand and its potential for further divestitures according to analysis. Nike has not indicated whether it will pursue similar exits for other non-core assets.

What Does This Mean for Markets?

The undisclosed nature of the RTFKT sale suggests Nike is managing the transaction with discretion as reported. While the financial terms are not available, the move could signal a reduced emphasis on NFTs and Web3 initiatives within the company according to market analysis.

Markets may interpret the sale as a step toward financial optimization and operational clarity. Nike's ongoing partnerships in virtual environments indicate that it is not fully exiting the digital space as stated.

Investors are advised to assess the implications of this transaction in the context of Nike's broader strategic direction. The company's focus on physical and virtual product innovation remains a key factor in its long-term growth prospects according to analysis.