Versace is now in Prada’s bag in the biggest luxury business deal of 2025. What changes?

Prada has acquired Versace for $1.375 billion.

Transcript

00:00Versace in Prada's bag. Italian fashion house Versace now has a new owner and it's none other

00:09than its rival, Prada. This move unites two of the biggest names in Italian fashion in a takeover

00:14from Versace's current owner, Keptri Holdings, which also owns Michael Kors and Jimmy Choo.

00:19On 10th April of 2025, Prada struck a $1.375 billion deal, buying the smaller rival with

00:26all of its debt after months of negotiations. This merger now puts Prada in the top league of

00:31the luxury industry, at par with French conglomerates like LVMH and Kering. Versace was founded as a

00:36family-run company in 1978 by Gianni Versace and run by his family after his death, much like many

00:42other iconic fashion houses. On March 13th, 2025, Donatella Versace announced she was stepping down

00:48as the chief creative officer of the brand, founded by her late brother Gianni. Meanwhile, Prada has

00:53defied a slowdown in luxury demand in a global market marked with turmoil and tariffs. In fact,

00:58Prada's Miu Miu was touted as the hottest and most popular luxury label of 2024 as per most reports.

01:05While this move marks a campaign boost for Made in Italy, the revenue of the top five Italian groups

01:09is still much lesser than the French Kering's 17 billion euros, even after a recorded drop in its

01:14sales. Mind you, Kering is second to LVMH, which is still the world leader in luxury. The Kering

01:19group also has a big portfolio of powerful brands like Gucci, Issy Laurent, Balenciaga and Alexander

01:24McQueen, among many others. What do you think is the future of luxury looking like? Let us know in

01:29the comments below.