MARTHA STEWART - MARTHA STEWART BUYS EMERIL'S SHOWS AND OTHER ASSETS

Martha Stewart Living Omnimedia has cooked up a deal to buy TV chef Emeril Lagasse's television shows, cookbooks, and branded products for $45 million cash and $5 million stock, the company announced today (Tuesday). If certain performance goals are met in 2011 and 2012, the deal could be worth as much as $70 million. The announcement noted that Lagasse's eleven restaurants and corporate office were not included in the transaction. Analysts said that the move represents an effort to diversify Stewart's company after relying on her name alone in the past and that MSLO may now attempt to build other celebrity brands within the company. The company observed the deal with Lagasse will "contribute immediately to our performance." In 2007 the Lagasse properties involved in the deal generated $14 million in revenue.

19/02/2008