NEW YORK (Reuters) - Martha Stewart, decorating and cooking Dean, may sell its business or find a partner for it after the hiring of bankers to explore its options.
Martha Stewart Living Omnimedia move to hire the Blackstone Group - news sent shares in the company of more than 20 per cent - comes after several years of declining sales in its magazine publishing television and merchandising businesses. Between 2007 and 2010, revenues have fallen more than a quarter.
The company, whose market value is just above $ 200 million, said Wednesday that it has hired Blackstone after that other parties was approached to become a partner or invest in it.
Martha Stewart Living warned that there is no guarantee that any operation or the partnership would occur.
Nobody made an offer for the whole of the undertaking, a source familiar with the situation said, adding that founder and shareholder majority Martha Stewart preferred a partnership or investment to an outright sale.
Stewart, who turns 70 this year, will join the Board of Directors. She stated in an interview that his interest in the company has not decreased. It left the door open to a number of shots.
"There are a lot of opportunities very interesting both national and international scale for this company," she said. "What we are going to focus on is all these opportunities - and really focus on them.".
Analysts said that the options in the company ranging from partnerships with other companies in media, such as Time Warner Inc. or John Malone Liberty Media Corp., transactions that would take the company private, following the example of publishers like Playboy Enterprises.
"They are too small to be big and too large to be small," said analyst of Phoenix partners Group Robert Routh. "As a stand-alone company, leverage for all savings and revenue opportunities that they should." "In the framework of a larger organization, which would be a piece of cake".
Stewart, who has served a prison sentence after being found guilty in 2004 to lie to investigators on a sale of action, has been unable to sit on the Board or to work as a leader under the terms of regulation of securities regulation. Put an end to these restrictions in August, and it should join the Council in the third quarter.
"I guess if they are exploring strategic options, including sale, she would like to be on the Council and the framework of this decision-making process," said Michael Kupinski Noble financial analyst.
The company day the day running will be left to Lisa Gersh, co-founder of media oxygen, who was hired as Chief of operations of the company. It should assume the role of CEO in 12 to 20 months, the company said Wednesday.
Once a company whose shares traded approximately $30 a share, Martha Stewart Living has been struggling to attract advertising dollars and handed over the management and staff layoffs in recent years.
But analysts say that the company has made progress. Advertising has improved considerably, which should help publishing.
He also has an agreement with Hallmark Channel of the media of the Crown to develop programs and recover the costs of production faster than in previous agreements. He also hit merchandising deals with partners such as Home Depot, PetSmart and Macy.
"I have said for some time that once that the company had some of its ducks in a row, they would explore the options," said Kupinski.
Routh in Phoenix said that he, too, was unsurprised by the decision of Martha Stewart living to hire investment bankers.
"" If you are managing and you see this growth over the next two or three years, and public procurement do not, would not consider you the private company, or do something strategic? "".He said.
Martha Stewart Living shares were up 87 cents at 4.64 $ after reaching $5.10 at the New York Stock Exchange.
(Additional reporting by Megan Davies.) (Editing by Maureen Bavdek, Dave Zimmerman and Robert MacMillan)
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