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Martha Stewart is still money

Sarah Gilbert — Thu, 16 Apr 2009 15:00:00 EST

Filed under: Management, Martha Stewart Living Omnimedia (MSO)

If I was worried about the fate of Martha Stewart's flagship magazine, Martha Stewart Living, perhaps my concerns were unfounded. The statement from Martha Stewart Living Omnimedia (NYSE: MSO) could not be more bold, more unfailingly optimistic (like Martha herself): Martha is getting a raise.

It's a big one, from her current CEO salary of $900,000 a year to at least $2 million annually for the next three years, plus a hefty "retention incentive" of $3 million today.

But where was she going? you might ask. After all, the company is her very self, media-opolied. As far as I can tell, she was going nowhere, but without her there is little left. Martha's aspirational persona has made an indelible mark on our culture, one that has no danger of falling victim to our economic downturn. She represents the soul of the DIY ethos; not for nothing do people say of any well-executed craft, especially one involving vintage pieces found at a thrift store, "that's so Martha!"

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Martha Stewart is still money originally appeared on BloggingStocks on Thu, 16 Apr 2009 15:00:00 EST. Please see our terms for use of feeds.

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Could Martha Stewart Living mag be troubled?

Sarah Gilbert — Mon, 02 Feb 2009 08:03:00 EST

Filed under: Management, Magazines, Martha Stewart Living Omnimedia (MSO)

In a previous post about the medium I call "periodicals printed on paper," I wrote that the universe of magazines and newspapers was being winnowed, and only the very best would survive. As my mind's eye darted around a mental image of a newsstand, a few periodicals stood out as "best"; Martha Stewart Living chief among them. MSL has not just created a loyal following and niche audience; it is a symbol of an entire subset of the population, an aspirational icon who is, while not exactly an ordinary person herself, creates a mostly achievable lifestyle. Her magazine will always represent the soul of the DIY culture; not for nothing do people say of any well-executed craft, especially one involving vintage pieces found at a thrift store, "that's so Martha!"

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Could Martha Stewart Living mag be troubled? originally appeared on BloggingStocks on Mon, 02 Feb 2009 08:03:00 EST. Please see our terms for use of feeds.

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Martha Stewart earnings were a good thing, but future is uncertain

Jonathan Berr — Wed, 01 Aug 2007 10:28:00 EST

Filed under: Earnings Reports, Deals, Press Releases, Marketing and Advertising, News Corp'B' (NWS), Dow Jones and Co (DJ), Martha Stewart Living Omnimedia (MSO)

Though Martha Stewart Living Omnimedia Inc. (NYSE: MSO) today reported decent second-quarter results, its future as an independent company remains in doubt in the wake of News Corp.'s (NYSE: NWS) $5 billion acquisition of Dow Jones & Co. (NYSE: DJ).

First the numbers. The company reported a net loss of $6.37 million, or 13 cents per share, compared with a loss of $1.17 million, or 2 cents, a year earlier. Revenue rose 7.7% to $73.4 million. Excluding one-time items, the company's loss was 9 cents. Wall Street was expecting a loss of 9 cents on sales of $71 million, according to Thomson Financial.

Chief Executive Susan Lyne, who has done a better job running Martha Stewart Living than Stewart herself, expects the New York-based company to return to profitability this year. The company maintained guidance for revenue this year of $333 million to $340 million and for $68 million to $75 million in the quarter.

Investors, though, are clearly expecting more from the domestic diva. Shares of the company have plunged more than 38% this year. The few Wall Street analysts who cover the company seem lukewarm on the stock at best and there is little chance that sentiment will change.

Though Martha Stewart is a formidable brand, the company remains a tiny fish in the vast media ocean. Sooner or later, it will get swallowed up by a bigger fish or even a shark like News Corp.

Martha Stewart earnings were a good thing, but future is uncertain originally appeared on BloggingStocks on Wed, 01 Aug 2007 10:28:00 EST. Please see our terms for use of feeds.

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Media merger mania isn't slowing down soon

Jonathan Berr — Fri, 04 May 2007 10:34:00 EST

Filed under: Major Movement, Deals, Products and Services, Rants and Raves, XM Satellite Radio (XMSR), Sirius Satellite Radio (SIRI), Marketing and Advertising, New York Times'A' (NYT), Costco Wholesale (COST), Gannett Co (GCI), Best and Worst 2006, Martha Stewart Living Omnimedia (MSO)

Mergers come to sectors in waves and now its media's turn.

There are many companies that would be of interest to either public or private buyers including Gannett Co. (NYSE: GCI), E.W. Scripps Co. (NYSE: SSP) and Martha Stewart Living Omnimedia Inc. (NYSE: MSO).

Shares of Gannett, the largest newspaper publisher, have tanked more than 20% over the past five years as advertisers fled to the Internet. The company, though, has a solid management team that has made many accretive acquisitions.

Scripps has long been a favorite on Wall Street. The company's cable business, which includes the Food Network and HGTV, is great and its newspaper business is no worse off than others, which I realize is faint praise. Its shares are down 13% this year.

Martha Stewart Living, whose shares have plunged 15% this year, has defied the skeptics.

Even though the company recently said its first quarter loss widened, the results did beat Wall Street expectations. Chief Executive Susan Lyne has done a good job in expanding the Stewart brand. The recent prepared food deal with Costco Wholesale Corp. (NASDAQ: COST) seems to have potential.

Other targets include The New York Times Co. (NYSE: NYT), which I've argued before, satellite radio companies XM Satellite Radio Holdings Inc. (NYSE: XMSR) and Sirius Satellite Radio Inc. (NASDAQ: SIRI) and Belo Corp. (NYSE: BLC), which owns the Dallas Morning News along television and radio stations.

Media merger mania isn't slowing down soon originally appeared on BloggingStocks on Fri, 04 May 2007 10:34:00 EST. Please see our terms for use of feeds.

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Martha Stewart and SEC settle

Michael Canfield — Mon, 07 Aug 2006 13:45:00 EST

Filed under: Insiders, Law, Rants and Raves

Our long national nightmare is over, as Martha Stewart has settled her ImClone matter with the SEC . She's agreed to pay the maximum fine of $195,000 and agreed not to serve as director of a publicly held company for five years. Stewart is of course, the personality and creative force behind her brand, so a title hardly matters. Shares of Martha Stewart Living Omnimedia Inc. (MSO) rose 12 cents to $17 in morning trading on the NYSE.

If I remember correctly, Stewart made about $40,000 off the sale ImClone stock acting with insider information, which has got to make it the hardest $40k she ever earned. I thought jail time (she served five months) too harsh, but, unlike executives who've done far worse, she manned-up and took it, and though the experience could have crushed her, she wouldn't let it, and she's been back now for awhile, probably to stay.

Michael Canfield is a private investor, a business and media writer, living in Seattle. He doesn't own stock in MSO.

Martha Stewart and SEC settle originally appeared on BloggingStocks on Mon, 07 Aug 2006 13:45:00 EST. Please see our terms for use of feeds.

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