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Motley Fool Hidden Gems Investing

Would A Macy’s Buyout Be A Miracle On 34th Street?

Motley Fool Hidden Gems Investing

The Motley Fool

Investing, Business

4.33.1K Ratings

🗓️ 11 December 2023

⏱️ 30 minutes

🧾️ Download transcript

Summary

Should investors be excited about a big department store potentially going private? (00:21) Jason Moser and Deidre Woollard discuss: - The potential for Macy’s going private. - If department stores are going the way of the dodo. - What could change the regulatory climate for big deals. (17:06) Ricky Mulvey and Matt Frankel dive into Boston Omaha, a company that could be poised to be the next great conglomerate. Companies discussed: BOC, M, WMT, AMZN Host: Deidre Woollard Guests: Jason Moser, Ricky Mulvey, Matt Frankel Producer: Ricky Mulvey Engineers: Dan Boyd, Annie Pope Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

Is it time for a miracle on 34th Street? Motley Full Money. I'm Deidro Willard here with Motley Full analyst

0:24.7

Jason Moser. Jason, how is your weekend?

0:26.5

It was a good weekend, Deidor. How about yours?

0:30.1

Pretty good. I'm starting to, every Sunday though. I start looking at the laptop. I start wondering what the news is.

0:37.0

You know, last few Sundays have been pretty good for me as a news junkie and did not disappoint this weekend.

0:44.4

The hot rumor, the rumor that is sort of dominating the stock market today too

0:49.5

is that Macy's might be acquired and taken private for 5.8 billion.

0:54.0

This is with a couple of private equity funds,

0:56.2

including Ark House Management and Brigade Capital Management.

1:00.1

I mean, the deal would be for around a premium of 32% for shareholders based on when the deal was announced

1:05.9

or was it like brought up at the end of November.

1:11.2

Stock has been battered around for a bit so that that is a premium based on where we were but not not from where the stock has been over time but then today the stock has been up practically to the level of $21 a share. Is this a deal that

1:25.6

shareholders should want? If I were a shareholder, which I'm not, but if I were I

1:30.1

would think so, yes. I mean we've talked about Macy's I think for for a number of

1:35.1

years on these on these shows and we've kind of always just come back to the same

1:39.6

ultimate conclusion is just it's a business that just remains challenged because it maybe it's not really necessarily a Macy's world anymore right?

1:48.1

I think Ron Gross years back asked the question

1:51.7

Does the world really need J.C. Penny, right?

1:54.4

When we were talking about J.C. Penny's woes, I feel like that question more or less

1:59.6

applies here to at least to a degree, right?

2:01.8

I mean, Macy's has more or less been treading water here over the last several

2:05.1

years trying to figure out the most sensible path forward I mean when you look at

...

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