Martha Stewart Living Omnimedia Inc. (MSLO) is a diversified media and merchandising company founded by Martha Stewart and owned by Marquee Brands LLC since April 2019. It is organized into four business segments: publishing, Internet, broadcasting media platforms, and merchandising product lines. MSLO's business holdings include a variety of print publications, television and radio programming, and e-commerce websites.
History
The company was founded in 1997 by Martha Stewart as an umbrella for the various media and merchandising ventures linked to the Martha Stewart brand. It went public on the New York Stock Exchange (NYSE) on October 19, 1999. The stock opened at US$18 a share, but shot up to $38 a share, making Stewart an instant billionaire.
On August 6, 2002, a class action was filed against Martha Stewart Living Omnimedia, Inc. for misleading investors by issuing materially false and misleading statements, and its officers using insider information to avoid losses. A settlement of $30 million was approved in 2007. In 2004, the company previously recognized as expense its estimate of annual subscription-acquisition costs rateably throughout the year. After reviewing this matter with its independent certified public accounting firm and its audit committee, the company determined on October 26, 2004, to change the method of accounting for interim period expense recognition of its subscription acquisition costs. The company recognized subscription-acquisition costs in the period in which the acquisition efforts took place and restated the financial statements.
Stewart served as president, chairwoman and CEO of the company until being forced to resign as a result of the ImClone insider trading case. As part of an agreement with the U.S. Securities and Exchange Commission, she was banned from serving in any role that would allow her to prepare, audit or disclose financial results of a public company until August 2011. In effect, this banned her from serving as an officer of her own company.
Stewart rejoined the board of directors of her namesake company in September 2011 and became its chairwoman once again in May 2012. Omnimedia media division stopped printing Everyday Food and Whole Living while Martha Stewart Living moved from monthly to 11 issues per year in 2013.
In 2012, Macy's sued Martha Stewart and J.C. Penney after the two companies decided, in 2011, to partner up and open up what would be called "Martha Stewart Home Shops". Macy's sued Martha Stewart for "breach of contract" and sued J.C. Penney for "interfering with its agreement with Martha Stewart". Both of these lawsuits were combined in December 2013. Macy's goal was to stop J.C. Penney from selling Martha Stewart merchandise that was supposed to be sold exclusively at Macy's. Macy's settled a portion of its lawsuit with Martha Stewart Omnimedia over a home products deal, however, Macy's continues to sue J.C. Penney. Stewart did not disclose the terms of the settlement. This lawsuit cost between "$7 million and $8 million in legal costs", according to CEO Dienst.
On February 19, 2008, MSL Omnimedia announced that the company had reached an agreement with celebrity chef Emeril Lagasse to purchase certain business assets for $50 million: $45 million in cash and $5 million in stock. With the exclusion of Emeril Lagasse’s restaurant chain and his foundation, the deal consists of the rights to television programs such as Essence of Emeril and Emeril Live, Emeril Lagasse’s Cookbook library, the emerils.com website, and kitchen and food products.
On December 4, 2015, it was announced that Sequential Brands Group acquired MSO. As a result of its acquisition, MSO requested that the NYSE suspend trading and de-list the company's common stock.
In March 2017, MSLO partnered with Marley Spoon Inc. to have Martha & Marley Spoon meal kit service delivered by Amazon Fresh to customers in Dallas, Boston, New York, Philadelphia, San Francisco and Washington D.C. metro areas.
Sequential Brands Group agreed in April 2019 to sell Martha Stewart Living Omnimedia including the Emeril brand to Marquee Brands for $175 million with bench marked additional payments. The lease on MSLO's headquarters in Starrett-Lehigh Building was not included in the deal, but Marquee could assume the lease. Marquee Brands owns the BCBG Max Azria brand and is a subsidiary of asset manager Neuberger Berman.
Publishing
Martha Stewart Living (11 issues per year) Martha Stewart Weddings Special issues including the annual Holiday Cookies Blueprint: Design Your Life (canceled) Martha Stewart Kids (canceled) Martha Stewart Baby (canceled) Everyday Food (canceled 2013) Whole Living (canceled 2013)