Martha Stewart Living Omnimedia will be acquired by Sequential Brands in a deal valued at approximately $353 million, of which $167 million will go to founder Martha Stewart. Omnimedia previously had been valued at around $2 billion. Sequential Brands, a New York company that purchases brands and licenses them to retailers and manufacturers, is paying $6.15 per share for MSLO, paying half in cash and half in cash. Stewart, who will retain her role as chief creative officer with a renewed long-term commitment, is eligible for a board of directors’ seat as of the closing, and will also be a major shareholder of the new public holding company.

"This is a transformational merger for Martha Stewart Living Omnimedia, the company I founded in 1997. This merger is positioned to further the growth and expansion of the unique Martha home and lifestyle brand. In 1991, I started a magazine, Martha Stewart Living, which was the first of its kind. Out of our groundbreaking editorial content grew an influential brand which quickly evolved into other media, merchandising and digital platforms and products which have helped consumers, worldwide, live better, more fulfilling lives," said Stewart. "With our media business operations now successfully transitioned to Meredith, we now have the opportunity to tap into Sequential's expertise and resources to expand our merchandising business both domestically and abroad.”

The acquisition is expected to close in the second half of this year. It includes a 30-day "go shop" period for MSLO, and is subject to customary closing conditions and approval by the holders of a majority of the MSLO outstanding common stock not owned directly or indirectly by Stewart or her affiliates.