Martha Stewart Living CEO Lyne steps down
Media veteran Susan Lyne is stepping down as chief executive of Martha Stewart Living Omnimedia Inc after nearly four years of navigating the lifestyle brand through quarterly losses and the brief imprisonment of its founder. Martha Stewart Living said on Wednesday it will make two of its executives co-CEOs: Wenda Harris Millard, a former Yahoo Inc executive who now serves as president of media, and Robin Marino, president of merchandising.
Shares of the media and merchandising company fell 6 percent.
Lyne joined the company in late 2004 while its founder and namesake Martha Stewart served a five-month prison sentence over a suspicious stock sale.
The former head of entertainment at television network ABC, Lyne was hired to turn the company around as it suffered from a flight of advertisers and falling circulation. At ABC, Lyne was credited with spotting such hit series as "Desperate Housewives."
"Our principal goal was to rebuild the company and return it to profitability. We have done that," Lyne said in a company statement on Wednesday.
She gave no explanation for her departure and was not immediately available for comment. Media industry columnists and blogs have speculated that Lyne could vie for a top role at publisher Time Inc, among other jobs.
In recent quarters, Martha Stewart Living reported improved advertising at its flagship magazine and growth for its websites. It has also taken steps to diversify its brand beyond a reliance on Stewart's own tips for gracious living, including a deal with celebrity chef Emeril Lagasse.
But investor concerns over future growth have weighed on company shares, which are off nearly 14 percent this year.
The shares have fallen 57 percent since Lyne was named CEO, with much of that decline coming in the second half of 2007 due to concerns over a weakening U.S. economy and its toll on the publishing business.
"The stock price is undervalued by Wall Street, but not undervalued by Main Street," Martha Stewart Living Chairman Charles Koppelman told Reuters.
"It's certainly not undervalued by our current partners and potential partners," he said. "A lot of that is market conditions."
Millard and Marino joined the company under Lyne's tenure, bringing their expertise in the areas of online advertising and retail merchandising. Marino was previously president and chief operating officer at luxury designer Kate Spade Inc.
Both will report to Koppelman and retain responsibilities for the divisions they oversee now. Asked whether the choice of a co-CEO structure suggested a potential for eventually splitting the units, Koppelman said, "Absolutely not."
Millard said in a joint interview that she and Marino already coordinate closely in running their respective segments of the company. "We saw an opportunity for even more collaboration," she said.
Marino said, "The most valuable asset in the world is having a media platform residing next to me. Others in the merchandising world would die for it."
Martha Stewart shares were down 49 cents to $7.49 near midday on the New York Stock Exchange. Original Source : http://www.guardian.co.uk/business/feedarticle/7578412
