Will Martha Stewart (MSO) Find Itself Going Private Soon? (M) (HSN)
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Martha Stewart Living Omnimedia (NYSE: MSO) is up today on speculation that the company's new CEO might be looking at a potential sale.
Bloomberg said Daniel Denst has had a track record of leading companies that were sold to private-equity and strategic buyers. With a market cap of $160 million, the stock has lost about $1.7 billion of market cap since 2005 and a sale might be the next best option.
Another option could be taking the company private while shares are so cheap. Martha Stewart owns all of the company's class B shares and controls the voting rights.
Peers like HSN, Inc. (Nasdaq: HSN) and Liberty's (Nasdaq: LINTA) QVC might also be interested in the company.
One manager from Gabelli, which has 1.8 million MSO class A shares, said a publishing company might also take a look. The maanger thinks Stewart could focus on what she's good at let someone create the strategy and build the business. He thinks MSO could get $4 per share in a takeover.
MSO is also embroiled in a fight with Macy's (NYSE: M) over exclusive rights to certain Martha Stewart Living goods that the company also allowed JCPenney (NYSE: JCP) to start selling. Investors will want to know that they will be able to produce and sell goods under the MSL name without violating any contracts once the lawsuit is finished.
Dienst was chairman of Metals USA Inc. when it was sold to affiliates of Apollo Management LP in 2005. He was then chairman and CEO of Metal Management Inc. before selling it to Sims Group Ltd. in 2008.
Shares of MSO are up 2.7 percent.
Bloomberg said Daniel Denst has had a track record of leading companies that were sold to private-equity and strategic buyers. With a market cap of $160 million, the stock has lost about $1.7 billion of market cap since 2005 and a sale might be the next best option.
Another option could be taking the company private while shares are so cheap. Martha Stewart owns all of the company's class B shares and controls the voting rights.
Peers like HSN, Inc. (Nasdaq: HSN) and Liberty's (Nasdaq: LINTA) QVC might also be interested in the company.
One manager from Gabelli, which has 1.8 million MSO class A shares, said a publishing company might also take a look. The maanger thinks Stewart could focus on what she's good at let someone create the strategy and build the business. He thinks MSO could get $4 per share in a takeover.
MSO is also embroiled in a fight with Macy's (NYSE: M) over exclusive rights to certain Martha Stewart Living goods that the company also allowed JCPenney (NYSE: JCP) to start selling. Investors will want to know that they will be able to produce and sell goods under the MSL name without violating any contracts once the lawsuit is finished.
Dienst was chairman of Metals USA Inc. when it was sold to affiliates of Apollo Management LP in 2005. He was then chairman and CEO of Metal Management Inc. before selling it to Sims Group Ltd. in 2008.
Shares of MSO are up 2.7 percent.
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