Martha Stewart Omnimedia surges on sale

AP News
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Posted: Dec 15, 2011 11:19 AM
Martha Stewart Omnimedia surges on sale

Shares of Martha Stewart Living Omnimedia rose more than 4 percent Thursday after the media company said it will sell its stake in WeddingWire Inc. for $11 million.

Late Wednesday, the company said it will sell about 8.4 million shares of WeddingWire to Catalyst Investors and garner about $7.6 million of other income from the deal. The income will be recorded in the fourth quarter.

Martha Stewart Living bought a 40 percent stake of WeddingWire, an online wedding planning site, in 2008.

Martha Stewart Living has been grappling with declines in print advertising revenue for its magazines and fierce competition from other websites that also offer recipes and lifestyle advice.

Last week, J.C. Penney said it will pay $38.5 million for a 16.6 percent stake in Martha Stewart Living Omnimedia Inc. Starting in February 2013, mini-Martha Stewart shops will appear inside most of J.C. Penney stores, and the companies will operate a joint website.

Shares rose 20 cents to $4.72.