The long-suffering shareholders of Macy's (M) just scored an early Christmas gift.

Macy's has received a $5.8 billion buyout offer from real estate investor Arkhouse Management and asset manager Brigade Capital Management, a source familiar with the matter told Yahoo Finance late Sunday. The offer — which values Macy's at about $21 a share — was reportedly submitted on Dec. 1. The company's board is mulling the offer.

The Wall Street Journal first reported news on the offer earlier Sunday.

Macy's declined to comment to Yahoo Finance.

The offer price marks a 32.4% premium to Macy's closing price on Nov. 30.

Shares rose 19% to close at $20.78 on Monday.

To be sure, Macy's board — led by a mix of retail veterans such as former Home Depot CEO Frank Blake — has a lot to consider.

For starters, Macy's all-time high stock price of $70.99 was hit on June 15, 2015, according to Yahoo Finance data.

As of Friday's close, Macy's shares changed hands at $17.39.

Meanwhile, just back in 2022 investment bank Cowen valued Macy's real estate holdings alone in a range of $6 billion to $8 billion.

Macy's has a prized real estate portfolio, headlined by its iconic Herald Square location in New York City. Valuations from various money managers on the trophy real estate asset have ranged between $3 billion and $4 billion in the past decade.

"Macy's has some valuable real estate including its Herald Square location, which makes Macy's more attractive as a target. Although the company has monetized some of its real estate, there is likely more that can be done," Citi analyst Paul Lejuez said in a client note today.

The company must also weigh how disruptive a buyout process could be into 2024.

Macy's is smack in the middle of the holiday shopping season, with results to be published in mid to late February. In February 2024, Macy's will see longtime exec Tony Spring take over as CEO from the retiring Jeff Gennette.

Brian Sozzi is Yahoo Finance's Executive Editor. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn. Tips on deals, mergers, activist situations, or anything else? Email [email protected].

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