05.29.2011 – Martha Stewart Posts (Tasteful) ‘For Sale’ Sign – Week On the Web – CRAIN’S NEW YORK BUSINESS

Martha Stewart posts (tasteful) ‘For sale’ sign

Media and home decor franchise explores options, while Albany decides on a property tax limit and hedge funder David Einhorn invests in the Mets.

By Benjamin J. Spencer
May 29, 2011 5:59 a.m

Bloomberg News

Even DIY craft maven Martha Stewart knows when she needs help. On Wednesday, her limping Martha Stewart Living Omnimedia announced that it had hired Blackstone Advisory Partners to evaluate its options, including a possible sale of the company.

The news sent MSLO shares soaring nearly 30%—to all of $5 each. The value of Ms. Stewart’s famed franchise, nearly $2 billion back in early 2005, was a mere $250 million after the day’s trading.

It’s been a hard few years for the media and home decor franchise. Magazine ad dollars dried up; a merchandising deal with Kmart wasn’t renewed. In January, NBC dropped Ms. Stewart’s morning television show and its related spinoffs, relegating them to Hallmark Channel oblivion. The company’s CEO position has been vacant since 2008; Lisa Gersh, a founder of Oxygen Media, is slated to assume the post June 6.

The company’s announcement came just as 69-year-old Ms. Stewart, who has had the job title of chief editorial officer the past few years, is set to rejoin its board of directors, ending a five-year banishment due to her 2004 federal conviction for obstruction of justice.

TAX-SQUEEZED SUBURBANITES, REJOICE: Gov. Andrew Cuomo and state leaders agreed to impose a 2% limit on annual property tax increases statewide. The guv says property taxes soared 5.5% per year between 1999 and 2009, and the new cap aims to combat economic decline. Still, the state teachers union said limiting tax increases would devastate low-income schools outside of New York City. Legislators seem set to vote on the cap next month. …

HEDGE FUNDER DAVID EINHORN BET $200 MILLION ON THE METS, buying a minority stake in the financially strapped team. Whether that’s enough to buy a championship, or even downplay owner Fred Wilpon’s recent tongue-lashing, remains to be seen. …

THE HUFFINGTON POST IS NOT OFF THE HOOK, YET. A federal judge declined to throw out a lawsuit claiming the media company’s founders, Arianna Huffington and Kenneth Lerer, stole the idea for the online news site from a duo of Democratic political consultants—a charge AOL Huffington Post Media Group said is “pure fantasy.” …

THE FEDS ARRESTED GERARD DENAULT, the lead manager on the controversial CityTime project, and charged him with receiving $5.6 million in kickbacks from a technology subcontractor. Mr. Denault, who oversaw the rollout of the computerized timekeeping system for more than 100,000 municipal workers, could not be reached for comment. His employer, Virginia-based SAIC, has not been charged with wrongdoing. …

TWO MASSIVE, LONG-VACANT BROOKLYN PROPERTIES WERE FINALLY CLEARED for redevelopment. A judge rejected a community group’s lawsuit and green-lighted a $2 billion redo for the former Domino Sugar factory in Williamsburg. The city is now free to rezone the 11-acre site for a mixed-use residential project. And in Sunset Park, a 1.1 million-acre warehouse shut since 2000 gets its own shot at redemption: The city’s Economic Development Corp. tapped Salmar Properties to redevelop the charmingly named Federal Building #2 for light industrial use.

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beejmckay

"The crew of the 'Rose Noelle" sits at Constable Godinet's dining table, enjoying a breakfast of whiskey and ice cream." Name's Beej. I'm a writer, filmmaker, amateur guitarist and drummer, and sometime photographer based in Bushwick, Brooklyn.

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