Go Pro and Red Bull

Go Pro and Red Bull

Introduction

A partnership business is a legal form of commercial operation between dualistic or more entities that stake profit and management. In a general partnership, the associates typically bring about the firm and adopt accountability for the partnership obligations and debts. Partnerships are mostly advantageous since it has a laid-back time in obtaining capital for running the business than other corporations. This is because partners who rub in for loans as individuals usually acquire loans on healthier terms. An excellent example of a partnership business is the relationship between Go Pro and Red bull. Go Pro is a well-known business firm that deals with the selling of portable cameras while Red bull, as a business, sells energy drinks. There are both excellent lifestyle brand business firms that have the same goal of amplifying consumers’ collective international influence, the ability to enthrall, and the power of its content.

Partnership Agreement between Go Pro and Red Bull

A partnership agreement is a written expression of what two or more partners have settled and agreed upon. It is well-known that Red Bull and GoPro are to combine powers on a comprehensive multiyear business that comprises of dispersal, contented production, product innovation, and cross-promotion. The agreement pointed as a fragment of the contract include;

• Red Bull will obtain impartiality in GoPro. In vice versa, Go Pro will turn out to be a Red Bull exclusive benefactor in imaging expertise for netting the immersive material of Red Bull events and mass media production.
• The two partners agreed that GoPro products and its brands would partake the right of entry to above 1800 Red Bull planned proceedings across 100 states. Both corporations will share satisfied privileges on co-production. Its associated content will be disseminated across GoPro and Red Bull digital distribution network. For example, Red Bull Television, GoPro Channel, Content Pool, Red Bull .com, or even Red Bull’s mass media amenity platform.
• Red Bull and GoPro’s official partners agreed that they would both effectively assist each other in share vision and scale on their respective businesses.

Capital Contribution decision and Profit & Loss sharing ratio

The basis of establishing a profit-sharing rate is based on two factors. They include capital contribution and its responsibilities. The capital contribution between GoPro and Red Bull was agreed to be an equal share contribution. Whereby Red Bull will obtain equity in GoPro, and GoPro will develop Red Blue Exclusive benefactor of point-of-view imaging technology for apprehending immersive footage of Red Blue media dealings as their responsibilities.

Accounts to be adjusted on the admission of a new partner

The entry of a new partner is unsafe as it makes a general partner jointly responsible for all pre-existing contingent and partnership liabilities. Accounts can be adjusted on the admission of a new partner in four means; either a new partner can buy a share of interest on the existing partner, or new partner can invest other asset or cash in the business. Also, a new partner can buy a bonus of existing partners by paying over and above the percentage interest received, or even the new partner can obtain a reward from the partnership by disbursing less than the interest percentage established.

Conclusion

GoPro is aiming at transforming the way every person visually and captures every moment of their lives. At the same time, Red Bull is the first global energy drink accessible in almost 170 countries. It usually focuses on giving people wings and broaden their various ideas. Their partnership is very strategic since they share similar apparition in inspiring the world in living a better life.

Reference

Mehri, M., Jouaber-Snoussi, K., & Hassan, M. K. (2017). Profit-sharing ratio as a screening device in venture capital. In Handbook of empirical research on islam and economic life. Edward Elgar Publishing.

Kunz, R. E., Elsässer, F., & Santomier, J. (2016). Sport-related branded entertainment: the Red Bull phenomenon. Sport, Business, and Management: An International Journal.

Hardy, J. (2018). Branded content: Media and marketing integration. The Advertising Handbook (pp. 102-117). Routledge.