Nike is considering acquiring Columbia Sportswear to expand into the outdoor sports market. The benefits would include entry into a new market segment, access to Columbia's customers, and cost savings from synergies. A hybrid stock and cash deal is proposed, offering $1 billion cash and $400 million stock. This balances maintaining Nike's balance sheet with shared risk assumption and low stock dilution. Potential setbacks include Columbia being attractive to competitors and the need for SEC approval. The board will now vote on the proposed acquisition.