57 F
New York
Sunday, October 17, 2021

Activist Jana takes stake in Macy’s, urges digital biz spin

Macy’s store in Herald Square in New York.

Scott Mlyn | CNBC

Activist investor Jana Partners has taken a stake in Macy’s and sent a letter to the department store chain’s board on Wednesday urging it to separate its e-commerce business, a person familiar with the matter told CNBC.

The person said Macy’s online business has already drawn interest from firms that would invest in it, in conjunction with a spinoff.

Macy’s shares spiked nearly 4% Thursday afternoon following the report, which appeared first in The Wall Street Journal. The retailer’s stock has risen more than 107% year to date.

A representative from Macy’s declined to comment. Jana didn’t immediately respond to CNBC’s request for comment.

In a presentation earlier this month, Jana said Macy’s online business could be worth about $14 billion, which is higher than $7 billion market value the department store currently has. Jana suggested the split at that time without saying anything about its stake in the department store operator.

Macy’s had told investors in August that it expected its e-commerce sales this year to be between $8.35 billion and $8.45 billion, after nearly doubling in the past four years.

Such a separation would mimic a similar one from the high-end department store operator Saks Fifth Avenue, which earlier this year spilt off its digital business into a separate company. The deal valued Saks.com at $2 billion, or about double its annual sales.

Source

Related Articles

The Court of Owls Strikes In the New Gotham Knights Trailer

The Court of Owls Strikes In the New Gotham Knights TrailerBatman is out of the picture in Gotham Knights. Regardless of whether you believe that...

clinton: Bill Clinton to spend one more night in hospital with non-Covid infection

WASHINGTON: Former US President Bill Clinton will spend another night at a hospital in California being treated for an infection, his spokesman said Saturday....

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest Articles

The Court of Owls Strikes In the New Gotham Knights Trailer

The Court of Owls Strikes In the New Gotham Knights TrailerBatman is out of the picture in Gotham Knights. Regardless of whether you believe that...

clinton: Bill Clinton to spend one more night in hospital with non-Covid infection

WASHINGTON: Former US President Bill Clinton will spend another night at a hospital in California being treated for an infection, his spokesman said Saturday....

With such a good vaccination programme, why are case numbers here still going up?

s of last Friday, Ireland lay seventh in Europe in one league table you don’t want to be at the top of — the league...

Dodgers: Dave Roberts Explains Roster Moves, Leaving David Price Off

With the Dodgers coming out of the NLDS victorious over the San Francisco Giants, they would surely make a few changes to their roster...