Activist investor Jana Partners takes stake in Macy’s, urges spin-off of digital biz

- Advertisement -


  • 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 divest its e-commerce business, a person familiar with the matter told CNBC.
  • Jana has said that she expects a standalone digital business to be worth a multiple of Macy’s current market cap, which is approximately $7 billion.
  • Such a separation would be similar to that of high-end department store operator Saks Fifth Avenue.

- Advertisement -

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 divest its e-commerce business, a person familiar with the matter told CNBC.

- Advertisement -

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

Following the report, Macy’s shares rose nearly 4% on Thursday afternoon, which appeared at first wall street journal. The retailer’s stock is up more than 107% to date.

- Advertisement -

A Macy’s representative declined to comment. Jan did not 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 more than the department store’s current market value of $7 billion. Jana suggested the split without saying anything about his stake in the department store operator at the time.

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

Such a separation would be similar to that of high-end department store operator Saks Fifth Avenue, which earlier this year spun off its digital business into a separate company. The deal is valued at Saks.com for $2 billion, or nearly double its annual sales.

.

- Advertisement -

Stay on top - Get the daily news in your inbox

DMCA / Correction Notice

Recent Articles

Related Stories

Stay on top - Get the daily news in your inbox