NFL Star Travis Kelce Just Became A Minority Shareholder In This Mattress Company – Stock Gains 10%

• Kelce’s total ownership will remain below 5%.
• The three-time Super Bowl champion will appear in Sleep Number’s national marketing campaigns, including television commercials and digital content across social and online platforms.
• The deal also strengthens the company’s long-standing partnership with the NFL.

Shares of Sleep Number Corp. (SNBR) jumped more than 10% after the opening bell on Wednesday after the company announced that Kansas City Chiefs star and three-time Super Bowl champion Travis Kelce became a minority shareholder.

As part of the agreement, Kelce will acquire Sleep Number common stock on the open market and receive restricted stock units that vest over the initial three-year term. Kelce’s total ownership will remain below 5%, though he will become one of Sleep Number’s top shareholders.

As part of the three-year agreement, Kelce will appear in Sleep Number’s national marketing campaigns, including television commercials and digital content across social and online platforms. President and CEO, Linda Findley, said that Kelce’s presence will be a “helpful accelerator” in a bid to attract new and younger consumers to the brand.

The three-year collaboration with Kelce is a central to Sleep Number’s broader marketing strategy and further strengthens its partnership with the National Football League (NFL), which the company has served as an official partner since 2018.

Retail Reaction

Retail sentiment for SNBR on Stocktwits shifted to ‘bullish’ from ‘neutral’ a day earlier.

One user sees upside potential in the stock.

Earlier this month, Piper Sandler raised the stock’s price target to $12 from $5 and maintained a ‘Neutral’ rating, according to The Fly.

Sleep Number will be hoping that Kelce’s involvement will bring a boost to sales, which fell 19.6% to $343 million in the third quarter, while net loss widened to $40 million.

The stock has declined 42% over the past year.

Read also: SBUX Stock Jumps 7% Today – US Transactions Grow For The First Time In Two Years

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