M&A

October 14, 2021

Some Biiiig Money for Macy’s

Department store Macy’s is valued at over $7 billion, but one activist investor thinks Macy’s could be worth a lot more… contingent upon one little thing.

In a letter to Macy’s management, Jana Partners says that spinning off Macy’s e-commerce business could bode well for the department store. Macy’s online biz could get attention from firms that are interested in investing in a spinoff. 💰 💰

The company’s e-commerce sales are expected to be worth more than the company’s entire market capitalization this year, landing somewhere above $8.3 billion. According to CNBC, those figures have nearly doubled over the last four years.

Those hefty figures (and the sweet, sweet appeal of the words “tech” and “e-commerce” among investors 😋) could earn Macy’s a $14 billion valuation for its online business. In other words: Macy’s online biz alone could be worth 2x the value of the whole company right now. Crazy, right?!

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