The $6 Billion Deal to Buy Macy’s


00:00
Speaker 1
You did.


00:01
Speaker 2
You know, discover wants everyone to feel special. That's why with your discover card, you have access to 24/7 customer service, as well as zero dollar fraud liability, which means you're never held responsible for unauthorized purchases. Learn more@discover.com credit card limitations apply.


00:22
Speaker 3
Wonder if.


00:32
Speaker 1
From wondery. I'm David Brown, and this is business wars daily on this Tuesday, December 19, for decades, Macy's has been known for its involvement in holiday cheer, from its annual Macy's Thanksgiving Day parade to its installment in the classic Christmas film Miracle on 34th street.


00:49
Speaker 3
What do you want for Christmas, Peter?


00:51
Speaker 4
I want to find it just like the big ones, only smaller. Has rose roll at water. And I won't do it in the house. I'll only do it in the backyard, I promise. Macy's ain't got me. Nobody's got me.


01:06
Speaker 3
Well, Peter, I can tell you're a good boy. You'll get your fire engine.


01:09
Speaker 4
Oh, thank you very much.


01:12
Speaker 1
But despite its legacy, the retailer has struggled with years of chronic underperformance. According to CBS, it's been trying to right the ship in recent years. Earlier this year, Macy said it planned to ditch some longtime instore brands and launched its own private brand on 34th, hoping to lure customers away from places like Amazon and Sheehan. But customers have cut down on discretionary spending due to, you know what inflation. And with a crop of stiff competitors, Macy's has struggled to get folks in the doors of its 500 stores and those of its subsidiary, Bloomingdales. And now there's an offer on the table. A real estate focused investing firm, Arkhouse Management, has partnered with Brigade Capital Management on a $5.8 billion proposal to take the retailer private.


02:01
Speaker 1
Arkhouse would acquire any Macy's stock it doesn't already own for $21 a share, though the investor has indicated it would be willing to raise that with due diligence. According to the Wall Street Journal, in 2015, Macy's stock was trading at a high of $70 a share, a far cry from the $21 per share on the table. But that's still higher than Macy's current share value, which closed at $17 a share two weeks back. While the retailers struggling, Arkhouse and brigade clearly see it as valuable to the tune of $5.8 billion, remember, and that, it turns out, may have a lot more to do with real estate than Macy's actual business. See, Macy still owns many of its stores. Its real estate portfolio is worth around $6 billion, and that's probably a conservative estimate.


02:48
Speaker 1
One analyst told CBS that means it'd be a good deal for a real estate focused investor, which arkhouse happens to be. You know, to come in, snag up Macy's locations and monetize those things sounds like a pretty good bet, I'd say. Well, neither the retailer nor the firms had made a public comment by production time. So we won't know what's actually happening to Macy's until the deal closes. Unless it doesn't, of course. But whatever happens, the news of the proposal buoyed the hopes of rival retailers as well. In fact, the big winners in all of this, analysts say, could be rivals like Nordstrom and TJX companies, which owns TJ Maxx. The deal could boost market sentiment for retail stock. And if Macy's happens to shutter its doors after all, Nordstrom and Max could swoop in on market share, right?


03:37
Speaker 1
Alas, it's hard out there for department stores these days. Yes, even those in beloved Christmas films. For Macy's, we'll just have to wait and see what's in store. From wondery, this is business wars daily. I'm your host, David Brown. Written and produced by Jessica Yarmoski. Our executive producers are Tina Rubio and Marshall Louis. Hey, Prime members. You can listen to business wars daily ad free on Amazon Music. Download the Amazon Music app today. Or you can listen ad free with Wondery plus in Apple Podcasts. Before you go, tell us about yourself by completing a short survey@wondry.com. Slash survey.


04:31
Speaker 2
You know, in today's world, it seems the best treatment is reserved for only a few. Well, discover wants to change that by making everyone feel special. That's why with your discover card, you have access to customer service as well as zero dollar fraud liability, which means you are never held responsible for unauthorized purchases. Finally, no matter who you are or where you are in life, you'll feel special with discover. Learn more@discover.com credit card limitation supply .

Comments

Post a Comment

Popular posts from this blog

U.S. Strikes Houthi Forces & Oregon Lawmaker’s Reelection Bid | Afternoon Update | 2.1.24

00:00 Speaker 1 This episode is brought to you by Netsuite. Download Netsuite's popular KPI checklist, designed to give you consistently excellent performance. Absolutely free@netsuite.com. Slash Morningwire that's Netsuite.com slash Morningwire. 00:15 Speaker 2 I'm Daily Wire editor in chief John Bickley with Georgia Howe. It's Thursday, February 1, and this is your morningwire afternoon update. 00:24 Speaker 3 Us military forces carried out a self defense strike against houthi unmanned aerial vehicles. 00:30 Speaker 4 And a ground control station early this morning. Daily Wire senior editor Cabot Phillips has more. 00:36 Speaker 5 According to CENTCOM, the military determined that a recently discovered uav ground control station, as well as a number of uavs in the houthi controlled areas of Yemen, presented an immediate threat to ships passing through the Bob Elmandeb Strait. As a result, CENTCOM says, the station was hit along with ten one way u...
Read more

Ukraine's $30 Billion Problem

00:05 Speaker 1 For the last two years, Ukraine has been fighting off a russian invasion. And this effort is exhausting and costly. To keep the country running, Ukraine has been relying on tens of billions of dollars from the US and the EU. But now that money me isn't flowing, what's at stake if Ukraine doesn't get. 00:31 Speaker 2 This money for Ukraine, the money that it's waiting on from the US and the EU determines its ability to fight the war? I think there's no way around that. Everybody agrees that it's extremely critical. 00:47 Speaker 1 That's our colleague Chelsea Delaney, and we're. 00:51 Speaker 2 Talking both about military aid, so ammunition, drones, all of those things, and as well, the money that the government needs to keep meeting its obligations to the people in Ukraine. So all of that is hung up right now. And without either the US or the EU, Ukraine's ability to fight, Russia is going to be severely constrained....
Read more

Border Bill Drama & Neuralink’s First Implant | 1.31.24

00:03 Speaker 1 While bipartisan negotiations over a border bill continue, many Republicans say it's dead on arrival. Instead of deterring immigration, they're literally incentivizing illegal immigration. They're handing people a parole and a work permit. Day one. That has to stop. 00:19 Speaker 2 When will the Senate share the full text of the bill? And can President Biden take unilateral executive action? 00:25 Speaker 1 I'm daily Wire editor in chief John Bickley with Georgia Howe. It's Wednesday, January 31, and this is Morning wire. 00:37 Speaker 3 Guys, this is not allowed, guys. Asking you to leave property. Or are we calling all the police? Have it your way. 00:50 Speaker 1 Six pro life protesters face eleven years in prison and hundreds of thousands of dollars in fines after being convicted of face act violations. Is this a case of political targeting? 01:02 Speaker 2 And Elon Musk announces his biotech company has implanted their ...
Read more