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.
This site is a gem, it is a site for learning, sharing
Launch related slideshow:
Nasdaq 100 Movers: BIIB, INTU
Friday 3/7 Insider Buying Report: YUME, HSC
Thursday 3/6 Insider Buying Report: ICUI, SLRC
S&P 500 Movers: BTU, VFC
Dow Movers: GE, NKE
S&P 500 Movers: SPLS, VLO
S&P 500 Analyst Moves: PWR
S&P 500 Analyst Moves: GWW
S&P 500 Analyst Moves: JNPR
Friday Sector Leaders: Defense, Auto Dealerships
Friday Sector Laggards: Computer Peripherals, Precious Metals
Thursday Sector Leaders: Metals Fabrication & Products, Oil & Gas Refining & Marketing Stocks
Friday's ETF with Unusual Volume: IBB
Friday's ETF Movers: KRE, GDXJ
EEM, IFNA: Big ETF Outflows
Daily Dividend Report: HRC, TCO, AMT, CVS
Daily Dividend Report: NMFC, MITT, AE
Dividend Increases: GD, DVN, MLR
Nonfarm payroll Employment Up 175,000 in February
Initial Claims Decrease, Productivity 1.8% Annual Rate Increase in Q4
ADP National Employment Report Released
Weekly Market Wrap: March 7, 2014
Weekly Market Wrap: February 28, 2014
Weekly Market Wrap: February 21, 2014
Week Ahead Market Report: March 3, 2014
Dow Movers: JPM, WMT
Week Ahead Market Report: February 24, 2014