Business

Yana activist bets at Macy’s and calls for digital business development

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Masked men walk in Herald Square on January 8, 2021 in New York.

Angela Weiss | AFP | Getty Images

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

The person said Macy’s online business has already generated interest from firms that will be investing in it along with the additional business.

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Macy’s shares jumped nearly 4% on Thursday afternoon following a report that first appeared in The Wall street journal… Since the beginning of the year, the retailer’s shares are up more than 107%.

A Macy’s spokesman declined to comment. Yana did not immediately respond to CNBC’s request for comment.

At a launch earlier this month, Yana stated that Macy’s online business could be worth around $ 14 billion, higher than the department store’s current market value of $ 7 billion. Yana then offered to split up, without saying anything about her stake in the department store operator.

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

The split mimics a similar split by luxury department store operator Saks Fifth Avenue, which spun off its digital business earlier this year. Saks.com is valued at $ 2 billion under the deal, roughly double its annual sales.


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