Martha Stewart Living rises after buying Emeril rights
Martha Stewart Living Omnimedia, Inc. (NYSE: MSO) shares are rising after the media and merchandising company reported that it bought the rights to the Emeril Lagasse franchise of cookbooks, kitchen products and TV shows. The New York City-based firm said it paid $45 million in cash and $5 million in stock for the rights. The price could rise to $70 million if certain benchmarks are achieved.
"Emeril brings talent, energy and legions of fans to the Martha Stewart family, along with a powerful brand and an attractive, profitable business franchise," CEO Susan Lyne said in a statement. "Emeril's high-quality food-related content and product lines complement our own, and offer multi-platform expansion opportunities. This acquisition is a significant one strategically as we expand and diversify our business by applying our expertise in managing multi-platform lifestyle brands."
Lyne said the purchase will contribute “immediately” to the company’s performance.
Lagasse’s 11 restaurants will be unaffected by the transaction.
Also on Tuesday, Martha Stewart Living Omnimedia announced it agreed to buy 40% of the online wedding planning site WeddingWire. Under the agreement, WeddingWire will provide its tools to Martha Stewart’s website.
Investors are reacting positively to the transactions as MSO shares are up 15.82%, or $0.97, at $7.10 in afternoon trading. Over the last 52 weeks, shares have ranged from $5.22 to $19.50.
