Hudson's Bay Acquiring Saks in $2.9B Deal With Debt

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July 29 (Bloomberg) -- Bloomberg deals reporter Cristina Alesci and Bloomberg Industries senior media and internet analyst Paul Sweeney examine the $2.9 billion deal between Hudson's Bay and Saks that brings together three iconic largest luxury brands under one roof. They speak on Bloomberg Television's "Bloomberg Surveillance."

You were talking about saks was going to be a hot deal property.

What is the back story of the hudson bay deal offer?

Sara, yes, you and i have been talking about this.

Hudson bay emerged a couple of months ago as a likely bidder here.

-they started out -- hudson bay started out as a real estate developer who basically developed into a retailer when it bought some lord and taylor stores.

Now even going into the higher end, and they diversified across different price points.

What is interesting is as -- with real estate, hudson bay has been trying to become a better and more efficient retailer.

If you look at lord and taylor sales per square foot, they are about $218 per sales per square foot, whereas saks, even though it has challenges, has almost double.

But then they clearly converted something from saks here.

Let's bring in paul sweeney.

Is this the beginning of something bigger?

Is there something going on here?

I think we are in a great investment environment, a great capital raising environment.

The media sector has been a tremendous m&a environment.

We have seen john malone get back to the business after an absence of 15 years.

We have seen some of the newspaper companies buying multibillion-dollar tv acquisitions.

Then, of course, the omnicom- publicis deal.

Has done for the return or people playing catch-up?

I think it is a combination of both.

What we have seen in the media sector is time after time you have senior executives like john malone talking about scale and the omnicom-publicis deal was all about ill.

Paul sweeney is with us.

We will continue this discussion.

Cristina alesci, thank you so

This text has been automatically generated. It may not be 100% accurate.

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