"Here I come to save the day!" Mighty Mouse might be worth $5.8 billion! In a recent turn of events, Macy's, the storied department store chain, has been thrust into the spotlight with a $5.8 billion buyout offer from real estate investor ARKHOUSE and asset manager Brigade Capital Management, LP. Announced on December 1, 2023, this aggressive bid values Macy's at a robust $21 per share. This marks a substantial 32.4% premium over its closing price on November 30. The offer, made as the holiday season kicks into high gear, also comes at a time when Macy's is undergoing changes, including a transition in leadership, with Tony Spring set to take over as CEO from the 40-year tenure of Jeff Gennette in February 2024. This potential buyout is a key development, considering Macy's has a prized real estate portfolio, headlined by its iconic Herald Square location in New York City. In recent years, various valuations have placed the worth of this trophy asset alone between $3 billion (USD) and $4 billion. The buyout offer is part of a broader trend affecting big box stores, which have been facing challenges due to changes in consumer behavior and the growth of e-commerce. Notably, Macy's has been losing market share in the U.S. retail industry since 2019. Despite the closure of numerous department stores since 2018, Macy's hasn't been able to significantly gain ground in the market. The future of Macy's under this potential buyout is still uncertain. Analysts suggest that being private could allow for more rapid changes and potentially a disassembly of Macy's as it currently exists. There's also the possibility that parts of the company, such as luxury chain Bloomingdales and cosmetics store Bluemercury, could be sold off individually. Stay tuned! Picture credits: Mighty Mouse (1951): Mighty Mouse soars above the crowd as he hogs the spotlight in his balloon debut. Nick Petersen/NY Daily News Archive via Getty Images #mergersandacquisitions #retail #realestate #buyout #consultingservices #businessstrategy #macys #newyorkcity
