Martha Stewart Living Omnimedia Sold To Sequential For $353 Million

In a deal announced Monday, Martha Stewart’s iconic media and home living firm Martha Stewart Living Omnimedia Inc (MSO - Snapshot Report) is being sold to Sequential Brands Group Inc (SQBG - Snapshot Report), a company that buys and licenses brands.

• The deal is worth $353 million in a cash-and-stock deal.
• The offer is $6.15 per share, and represents a premium of 21% to Martha Stewart Living’s closing price on June 17.
• The per-share offer is only a small portion of what the stock’s valuation was in 1999. On the day the company went public, its stock price rose to almost $47.50.
• Stewart launched Martha Stewart Living in 1997, and in the coming years, found immense fame with her popular cookbooks and television shows. She was just reinstated as chairwoman in 2013 after stepping down from her position as CEO and chairwoman back in 2003.
• The company has suffered through continuously falling sales over the past few years, particularly in its publishing business. They’ve had to cut back on print magazine issues, and convert some titles to digital editions.
• Martha Stewart Living gets its revenue from its publishing business, most notably from popular magazines Martha Stewart Living and Martha Stewart Weddings. The company also sells home improvement products at retailers like Macys Inc (M - Analyst Report) and Home Depot Inc (HD -Analyst Report).
• Martha Stewart Living closed the day today at $6.12, dropping 12.32%; the company currently sits at a #5 (Strong Sell) on the Zacks Rank. Sequential Brands Group closed the day at $16.82, falling 1.06%; the company is a #4 (Sell) on the Zacks Rank.