Report: Martha Stewart To Sell Struggling Business

(RTTNews) - Publishing and housewares conglomerate Martha Stewart Living Omnimedia Inc. (MSO) is nearing a deal to sell itself to Sequential Brands Group Inc. (SQBG), the Wall Street Journal said, quoting people familiar with the matter.

Terms are being discussed between the two firms and a deal is expected to be announced in the coming days.

Founded in 1996, the company provides lifestyle content and products for its consumers worldwide. It focuses on areas like cooking and entertaining, home decorating, weddings, holidays and celebration. 73-year-old Martha Stewart is currently chairman and chief creative officer of the company.

Martha Stewart, who took the company to dizzy heights, fell from glory when she got involved in a stock sale investigation and had to serve about 5 months in prison. Analysts say her brand is tired and does not appeal to younger, free-spending customers.

MSO surged 26.3 percent on Thursday amid the take-over speculation to settle at $6.44.

Sequential Brands, an acquisitive retail-licensing company, climbed 12.7 percent to close at $16.08, and rose 2.2 percent in pre-market.

The deal will help the company, which has brands such as Linens N Things and And 1, broaden its portfolio.