Seeking Alpha

Analysis: Eddie Lampert should take Jeff Bezos' call

  • Amazon (AMZN +0.5%) should take the giant step of acquiring Sears Holdings (SHLD +13.3%) to instantly create a distribution network and omnichannel answer, writes Robin Lewis.
  • A move by Amazon to buy Sears in one full swoop would be faster and more efficient than building a retail network from ground up.
  • In addition to the real estate assets, Lewis notes Amazon might be able to bolt on Sears' e-commerce business and charge some life into its once-vibrant brands.
  • For Sears, a sale to Amazon makes sense because the string might be run out on Eddie Lampert's financial engineering plays.
  • The wildcard in the mix is unwinding the complex morass of business units and brands that Eddie Lampert created at the company to unlock value.
Comments (29)
  • Patent News
    , contributor
    Comments (1312) | Send Message
     
    Amazon does NOT need Sears, why WOULDNT they just let it go bankrupt at that rate and buy the real estate it may want later?

     

    no rush!

     

    foolish idea.
    17 Apr, 03:12 PM Reply Like
  • Stone Fox Capital
    , contributor
    Comments (5741) | Send Message
     
    doubt AMZN would pay a premium value unless it used stock, which would crush the stock so not going to happen.
    17 Apr, 03:19 PM Reply Like
  • Long-Short Value
    , contributor
    Comments (101) | Send Message
     
    I am long SHLD and I even think this is far from a possibility.
    17 Apr, 03:22 PM Reply Like
  • TWagen
    , contributor
    Comments (143) | Send Message
     
    Crazy. Not only are the sears assets of dubious value but the cultures are way to different. The current Sears infrastructure can do nothing but cause issues for Amazon.

     

    Premium... There is none there.

     

    Amazon probably hopes that someone else buys them and has Sears muck up their operations....
    17 Apr, 03:27 PM Reply Like
  • fuzzymc
    , contributor
    Comments (102) | Send Message
     
    Someone must be trying to prop up sears stock! Insider buying and know this silly story!!
    17 Apr, 03:36 PM Reply Like
  • Heinz Doofenshmirtz
    , contributor
    Comments (269) | Send Message
     
    The insider made a ~$15 million purchase. Unless he's exceedingly wealthy, I don't think his intention is to "prop up the stock".
    17 Apr, 03:57 PM Reply Like
  • Energysystems
    , contributor
    Comments (943) | Send Message
     
    The trust controlled by Tisch and family members have owns over 4M shares of $SHLD. Safe to say, he's comfortable, although he may not be comfortable with $SHLD's share price. He's also one of the longest serving Directors on $SHLD's board.
    17 Apr, 06:02 PM Reply Like
  • rube123
    , contributor
    Comments (777) | Send Message
     
    the trust has 4 million? or 933,478

     

    http://1.usa.gov/1hRsFT0

     

    maybe I am reading this wrong , there should be 3.8 million in that trust

     

    AMZN buying SHLD will never happen, just another rumor being started

     

    to much quality property that is better suited and located for sale

     

    AMZN is about spending money on innovative ideas , not manipulation , Bezo's and fast Eddie are worlds a part

     

    if someone was to start a rumor that Bezo's and Musk were going to team up on the super speed transit , that would be a different story , plug that in with Bezo's online, and delivery just got faster

     

    http://cnn.it/1hRsFT1
    17 Apr, 08:46 PM Reply Like
  • Energysystems
    , contributor
    Comments (943) | Send Message
     
    hmmm, from what I had previously read the trust owned in the area of 4M shares. I could be wrong. I completely agree on the point that there's no way AMZN wants to buy SHLD.
    17 Apr, 09:00 PM Reply Like
  • rube123
    , contributor
    Comments (777) | Send Message
     
    you were right in what you read , at 1 time he "had " 4 million shares in trust, he doesn't any more, every body is all excited about the 475,000 shares he just bought , but nobody is saying anything about 3 million shares he sold

     

    his buy is what caused the jump today

     

    there is an article out by somebody that has been smoking a little to much dope suggesting the AMZN/SHLD deal
    17 Apr, 10:21 PM Reply Like
  • idkmybffjill
    , contributor
    Comments (1545) | Send Message
     
    rube, are there any filings of the 3M he sold? it would've definitely shown up given that he's a director.
    17 Apr, 11:02 PM Reply Like
  • rube123
    , contributor
    Comments (777) | Send Message
     
    idk
    I didn't see were he bought it for the trust either , not sure it would show, maybe I missed it....it has been a director a long time
    I think that filing is correct in what the trust holds.......and its 3 million lite ...
    if I am wrong...please find it....
    here is a link ..maybe I missed it
    http://1.usa.gov/1eQtf3b

     

    no speculation....just facts...enough B/S been spouted on this SHLD/POS

     

    if you find he still holds it..I mite buy a share...LOL
    18 Apr, 09:32 AM Reply Like
  • Teodor Rasa
    , contributor
    Comments (152) | Send Message
     
    Love Robin Lewis but not going to happen and completely unnecessary. That would be a giant step backward for Amazon.
    17 Apr, 04:15 PM Reply Like
  • JohnJ9545
    , contributor
    Comment (1) | Send Message
     
    Sears is a dinosaur. Dress up dinosaur bones, even with the KarTrashian...I mean Kardashian line and you still have the bones of a dead creature that once ruled the world.
    17 Apr, 04:24 PM Reply Like
  • Energysystems
    , contributor
    Comments (943) | Send Message
     
    This may be the most ludicrous thing I've ever read on SeekingAlpha.
    17 Apr, 04:46 PM Reply Like
  • idkmybffjill
    , contributor
    Comments (1545) | Send Message
     
    Biggest issue not mentioned anywhere is taxes. If AMZN bought SHLD, they would have to pay taxes in all 50 states. Right now, they only pay sales tax in the states where they have a physical presence.
    17 Apr, 07:00 PM Reply Like
  • Bouchart
    , contributor
    Comments (754) | Send Message
     
    So a retailer that doesn't make money should buyout one with a foot in the grave?

     

    If AMZN wanted retail space, they should just wait for SHLD to go bankrupt and buy some of their stores here and there at firesale prices.

     

    What nonsense is this?
    17 Apr, 08:01 PM Reply Like
  • aow
    , contributor
    Comments (123) | Send Message
     
    Bingo, SHLD will go bankrupt sooner or later. The Land's End spinoff went awful so what are the odds they'll get good prices for their remaining assets? AMZN's entire business model is NOT having stores and relying on delivery. This is laughable. AMZN stock would get killed (even more so than it has been) if they so much as bit a bid out.
    18 Apr, 09:26 AM Reply Like
  • MarketLost
    , contributor
    Comments (808) | Send Message
     
    Too bad they don't do drug tests on Wall Street.
    17 Apr, 08:47 PM Reply Like
  • Brad Castro
    , contributor
    Comments (1250) | Send Message
     
    I was going to suggest an intervention myself . . .

     

    Is it possible to find two companies commitment to customer service and customer experience that are farther apart?

     

    Bizarre idea. What's next? DEO acquiring Christian Mingle?
    17 Apr, 09:29 PM Reply Like
  • Energysystems
    , contributor
    Comments (943) | Send Message
     
    But as a DEO shareholder, Ashley Madison may be an attractive acquisition lol
    17 Apr, 09:34 PM Reply Like
  • ggillin
    , contributor
    Comments (37) | Send Message
     
    Amazon helped put Sears where it is. Why-o-why would they want to own the junk heap now.

     

    I happen to like Sears, still do business there but Amazon is a different game.
    17 Apr, 10:18 PM Reply Like
  • cparks_reno
    , contributor
    Comments (3) | Send Message
     
    I'd love to read the strategic plan for this investment. Its a fiction readers dream.
    17 Apr, 10:44 PM Reply Like
  • Bill Stoller
    , contributor
    Comments (32) | Send Message
     
    @Robin Lewis: Last summer I wrote a blog piece for Motley Fool: Amazon and Sears: Strange Bedfellows or a Match Made in Heaven http://bit.ly/195zTLk I felt there would be some synergies for Amazon to acquire select Sears real estate assets, period. The valuable Kenmore, Craftsman, and Diehard brands are "walled off" in a separate entity for a reason. Sears has a ton of debt and significant legacy pension liabilities. Nobody with the means to acquire Sears Holdings would be the slightest bit interested to do so. However, cherry picking some unique real estate assets at a discount still makes total sense to me. Best, Bill
    18 Apr, 01:44 PM Reply Like
  • idkmybffjill
    , contributor
    Comments (1545) | Send Message
     
    Interesting theory, and I agree. Only counterpoint is why would Lampert agree to sell the select Sears real estate at a discount especially if he knows Amazon is shopping for that exact reason?
    18 Apr, 04:50 PM Reply Like
  • Energysystems
    , contributor
    Comments (943) | Send Message
     
    Lampert has to sell the real estate at a discount. The retail real estate market is saturated, mall foot traffic is down dramatically over the past 4-5 years, and he's already selling $SHLD's best properties for a discount(if the A stores are selling at a discount, what happens to the 98% of the rest of the real estate assets). This isn't even accounting for the issues within $SHLD, which have caused Ed to put a for sale sign on everything.
    18 Apr, 04:56 PM Reply Like
  • rube123
    , contributor
    Comments (777) | Send Message
     
    is this written by the same Bishop on here....LOL

     

    amazing what happens when you don't get your book finished in time, and buy the shares a head of schedule....LOL (Bishop said he wasn't buying any SHLD till the book was out ) his next book will be named "Just Kidding"

     

    http://bit.ly/1tjwKms

     

    KCD doesn't hold that much value , it is starting to sound like American Motors , for you young whippersnappers , google Rambler

     

    10 years from now, Kenmore will be history, that is how long it took Signature

     

    its hard to find competition that is as bad as SHLD
    AMZN wants SHLD around, they are good for business
    http://amzn.to/1tjwKmv

     

    http://bit.ly/1tjwJPB

     

    same 2 filters off a service van (Sears, or A@E) over $100
    people are just buying a filter , not a Rolex
    that is the Eddie plan.....fleece them ......AMZN, LOW, HD, BBY, WMT, all thank fast Eddie ....

     

    Eddie has accomplished what no one else could, he ruined the Sears, and Kenmore name

     

    a year ago everybody was claiming all the value in the Sears name , now that has been tossed into the coals

     

    think about that some

     

    AMZN may pick up a couple of SHLD properties at a fire sale , which is closer than everybody thinks

     

    they have to sell something to survive , $500 million just doesn't go as far as it used to

     

    their quarter ends in a couple weeks , then we will see just how good the Easter bunny has been to them

     

    wonder why Eddie thought it was good at $170 , but not good at $32
    ESL could have taken this POS over , instead , they sell

     

    when Eddie made 1000% on AZO, his investors made 20% , isn't that something ......LOL
    18 Apr, 07:51 PM Reply Like
  • strougo
    , contributor
    Comments (93) | Send Message
     
    Sears has too much good real estate to go bankrupt...the economy is recovering and so will sears holding with no lands end
    18 Apr, 11:37 PM Reply Like
  • rube123
    , contributor
    Comments (777) | Send Message
     
    per Ameya on other board
    The info is in the following document

     

    http://1.usa.gov/1hVsFjQ
    ============
    Page 15
    Thomas J. Tisch 3,747,774 Note(8)

     

    Page 16
    Includes 2,594,704 shares owned by Andrew H. Tisch, Daniel R. Tisch and James S. Tisch, brothers of Thomas J. Tisch, or by trusts of which they are the managing trustees and beneficiaries, in respect of which Thomas J. Tisch has sole voting power and 73,768 owned by two foundations over which Mr. Tisch exercises shared voting power. Thomas J. Tisch disclaims beneficial ownership of these shares.
    =========
    The Current purchase increased these shares by 470k

     

    just the FACTS!!!
    19 Apr, 08:37 AM Reply Like
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