MARTHA STEWART COMPANY BUYS TWO MAGAZINES

Acquisitions Signal New Post-Martha Marketing Strategy

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NEW YORK (AdAge.com) -- Martha Stewart Living Omnimedia laid out its post-Martha strategy today in an announcement it would purchase two health- and healing-related
The newly acquired 'Body & Soul' is slated for the 'Omni-business model' treatment.
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publications and apply what the company called its "proven Omni-business model" to them.

$6 million
The company purchased New Age Publishing's Body & Soul and Throne Communication's Dr. Andrew Weil's Self Healing newsletter for a total of around $6 million in cash.

The moves mark the first broadening of the company's portfolio beyond the home-related and Ms. Stewart-related-brands upon which it built a lifestyle empire.

After Ms. Stewart was sentenced to prison last month, insiders suggested the company should broaden its portfolio beyond its existing brands and content areas. In a conference call earlier this month with stock analysts, President-CEO Sharon Patrick said the company would "continue to evolve our business segment and brands from expert personality to trusted brand labels with an eye for future growth."

Heavy losses continue
The acquisition comes after the company reported a net loss for its second quarter, and forecast losses for the remainder of the year. Through July, ad pages at company flagship magazine Martha Stewart Living fell 42.8%.

In a statement, the company identified seven new "natural living core content areas": healthy eating; exercise and fitness; mental health; spiritual well-being; natural and integrative medicine therapies; natural home; and stress-reduction techniques. The company said these areas appealed to its existing customers' demographic base.

Janesse Bruce, CEO of New Age Publishing and Thorne Communications, will be senior vice president of the Body & Soul brand for MSO and report to Ms. Patrick.

Irony
Some see a tinge of irony in the company's move into New Age-esque themes, which to a degree underpin what's likely the most successful Martha Stewart-influenced magazine, Time Inc.'s Real Simple. Ms. Stewart herself originally took a dim view of that title, once describing it as "real stupid" in an interview.

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