Martha Stewart Living Omnimedia

Martha Stewart Living Omnimedia

Type	Public
Traded as	NYSE: MSO
Industry	Publishing Internet Broadcasting Merchandising
Founded	1997
Founder(s)	Martha Stewart
Headquarters	New York City, New York, U.S.
Key people	Charles Koppelman (Chairman and CEO)
Products	Martha Martha Stewart Living Everyday Food Martha Stewart Weddings Body+Soul Home decorating products Home furniture
Revenue	US$ 230.813 million (2010)[1]
Operating income	US$ -8.663 million (2010)[1]
Net income	US$ -9.596 million (2010)[1]
Total assets	US$ 222.314 million (2010)[1]
Total equity	US$ 139.033 million (2010)[1]
Employees	615 (2010)[1]
Website	MarthaStewart.com

Martha Stewart Living Omnimedia Inc. (MSLO, NYSE: MSO) is a diversified media and merchandising company founded by Martha Stewart. It is organized into four business segments: Publishing, Internet, Broadcasting media platforms and Merchandising product lines.^[2] 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 as an umbrella for the various media and merchandising ventures linked to the Martha Stewart brand. It went public on the NYSE on October 19, 1999. The stock opened at $18 a share, but shot up to $38 a share, making Stewart an instant billionaire on paper.

She 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 SEC, 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.^[3] However, she still owns a 96 percent controlling interest.

Corporate Executives

• Charles Koppelman, Executive Chairman
• Lisa Gersh, President & Chief Operating Officer

Publishing

• Martha Stewart Living
• Everyday Food
• Body+Soul
• Martha Stewart Weddings
  • Special issues including the annual Holiday Cookies

Four newspaper columns — ask Martha, Living, Weddings and Everyday Food — are distributed to newspapers throughout the United States via the New York Times Syndicate. Current books are published through Random House's Clarkson Potter division; earlier titles were offered through subsidiaries of Time Warner prior to Stewart's spin-off of her business ventures from its corporate umbrella. Publishing activities are a major source of income for the company, and accounted for roughly 60% of total revenue in 2005.

Television and radio

Television

• Martha (syndicated, daily)
• Everyday Food (PBS, weekly)
• Martha Stewart Living
• From Martha's Kitchen

Although MSLO retained no technical ownership stake in NBC's program The Apprentice: Martha Stewart, the company, its magazines, and various business ventures were prominently featured in each episode. Mark Burnett, who produced the series, is also co-producer of the company's daily talk show, Martha.

DVD

MSLO began marketing instructional DVDs in late 2005 through a partnership with Warner Bros., with the first five offerings oriented toward cooking and holiday and special event planning.

Radio

MSLO operates a satellite radio channel, Martha Stewart Living Radio, on Channel 112 of SIRIUS Satellite Radio. Among programs on the channel there is a weekday-evening talk show co-hosted by Martha Stewart's daughter Alexis Stewart, Whatever with Alexis and Jennifer.

Internet and Direct Commerce

The company's Internet and Direct Commerce segment currently includes its website marthastewart.com and a direct to consumer flower business, marthastewartflowers.com. Through an agreement with Touchpoint, it designed a line of customizable greeting cards under the Marthascards banner, which were sourced and fulfilled by Touchpoint. This agreement was replaced by a new program with Kodak EasyShare Gallery in 2006.

In November 2006 MSLO announced their launch of Martha's Circle which is a lifestyle oriented blog ad-network^[4] whose charter members include Apartment Therapy, Smitten Kitchen, and Charles & Hudson.

Historically, the company also produced a print and online catalog, Martha by Mail, which was launched in 1997 and later rebranded as Martha Stewart: The Catalog for Living. Following Stewart's public fallout and the dot-com bubble burst in 2002, the company decided to discontinue both the online and print editions in 2003. The final print catalog was mailed in January 2004, and the online store closed in June of that year.

Merchandising

MSLO additionally offers various home goods through its mass-market Martha Stewart Everyday brand in Kmart stores throughout the United States, and at Sears Canada in Canada. Furniture and paint are part of the company's specialty-retail oriented Martha Stewart Signature brand through a partnership with Bernhardt Furniture Company and previously with Sherwin-Williams. In October 2006, the company announced a new agreement with Lowe's to develop an exclusive interior paints line, which replaced its previous contract with Sherwin-Williams. The new line of paints, Martha Stewart Colors, launched in April 2007.

In April 2006 the company also announced its plans to develop a new, upmarket merchandise line with Macy's, Inc. (at the time named Federated Department Stores) launched in Macy's stores in 2007. The company has also announced its intention to design a new paper-based crafts product line, Martha Stewart Crafts, with EK Success, initially planned for release in time for the Holiday 2006 season, which later debuted in early 2007 at Michael's stores.

In Fall of 2009 Stewart announced the development of a line of outdoor furniture, indoor organization and decor products at Home Depot.

Wine

On September 14, 2007, Martha Stewart Living Omnimedia announced that it inked a partnership with E & J Gallo Winery to produce a wine brand with the label "Martha Stewart Vintage" (for sale in 6 cities, January. The 15,000 cases to be sold include: 2006 Sonoma County Chardonnay, 2005 Sonoma County Cabernet Sauvignon and 2006 Sonoma County Merlot (for Atlanta, Boston; Charlotte, North Carolina; Denver, Phoenix, and Portland, Oregon).

Martha Stewart also signed a contract with Costco Wholesale Corp. to offer a series of food products developed from MSLO’s extensive library of recipes and made with high-quality, fresh ingredients. The co-branded Kirkland Signature Martha Stewart food products bring the dishes featured in MSLO’s magazines, books, and television programs to the tables of Costco’s members. The products will be ready to serve, heat, or use.

Acquisition of Emeril Lagasse Franchise

On Tuesday, 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.^[5] 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.

References

1. ^ ^{a b c d e f} "20010 Form 10-K, Martha Stewart Living Omnimedia". United States Securities and Exchange Commission. http://www.sec.gov/Archives/edgar/data/1091801/000119312511066242/d10k.htm. 
2. ^ Company Overview
3. ^ Securities and Exchange Commission Litigation Release No. 19794 / August 7, 2006
4. ^ MSLO Draws Martha's Circle Blog, Lifestyle Site Network
5. ^ Martha Stewart buys Emeril franchise: Associated Press Business News: US:MSO - MSN Money

External links

• Official website
• Yahoo! company profile for Martha Stewart Living Omnimedia
• Photo tour of the offices of Martha Stewart Living Omnimedia