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