J.C. Penney (NYSE:JCP) said today it will acquire a 16.6% stake in Martha Stewart Living Omnimedia (NYSE:MSO) for about $38.5 million, or $3.50 per share.
With the stake, J.C. Penney will form a 10-year partnership with Martha Stewart Living, creating stores-within-stores dedicated to Martha Stewart products staffed by specially trained employees.
The companies will also jointly develop an e-commerce site. The retail and online changes will be launched in 2013.
Martha Stewart Living will receive more than $200 million from the partnership.
In a report on the partnership, The New York Times said Martha Stewart will continue its relationships with other retailers like Macy's (NYSE:M) and Home Depot (NYSE:HD).
Martha Stewart Living had hired the Blackstone Group (NYSE:BX) in May to explore the company's strategic options.
The New York Times noted that the partnership has been masterminded by new CEO Ron Johnson, the architect of Apple's (NASDAQ:AAPL) retail stores, who J.C. Penney brought in to revamp the company.
Martha Stewart Living Omnimedia shares are seeing strong gains Wednesday, while J.C. Penney shares are seeing a more modest gain.
Any ideas and opinions presented in all Market News Video clips are for informational and educational purposes
only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners.
In no way should any content contained herein be interpreted to represent trading or investment advice.
None of the information contained herein constitutes a recommendation that any particular security, portfolio,
transaction, or investment strategy is suitable for any specific person. All viewers agree that under no
circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held
liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.
ValueForum has been a life changer for me. 
Launch related slideshow:
Tuesday 5/21 Insider Buying Report: APA, AIG
Monday 5/20 Insider Buying Report: LPSN, FTEK
Monday 5/20 Insider Buying Report: LMNX, GFF
Daily Wrap: May 21, 2013
Weaker Sales Send BBY Lower
HD Raises Guidance After Strong Q1
Analyst Moves: YHOO, CPB, EV
Analyst Moves: PCLN, MSFT, LMCA
Analyst Moves: CCL, OIS
Tuesday Sector Leaders: Shipping, Education & Training Services
Tuesday Sector Laggards: Music & Electronics Stores, Precious Metals
Monday Sector Leaders: Metals & Mining, Precious Metals
Tuesday's ETF with Unusual Volume: IXN
Tuesday's ETF Movers: KWT, GDXJ
URA, GLDX: Big ETF Outflows
Daily Dividend Report: XRX, DGX, DKS, UVV, AWR
Daily Dividend Report: JPM, ALL, HRL, VAL, JOY
Daily Dividend Report: UMPQ, SJT, CRT, AVIV, SPAN
Initial Jobless Claims Jump by 32k
Jobless Claims Fall to Five Year Low
Hiring Picture Improves In April
Weekly Market Wrap: May 17, 2013
Weekly Market Wrap: May 10, 2013
Weekly Market Wrap: May 3, 2013
Week Ahead Market Report: May 13, 2013
Week Ahead Market Report: May 6, 2013
Week Ahead Market Report: April 29, 2013