NEW YORK (TheStreet) -- Shares of Martha Stewart Living Omnimedia (MSO) were rising, higher by 3.42% to $6.66 in early market trading Friday, following reports that the global lifestyle company is nearing a deal to be acquired by Sequential Brands (SQBG), according to The Wall Street Journal.
The two companies are in discussions for a merger, with a possible deal to be announced in the coming days, The Journal reports.
Sequential Brands is an acquisitive retail-licensing company that owns such clothing brands including Ellen Tracy, William Rast, Revo, Caribbean Joe, Heelys, DVS, The Franklin Mint and People's Liberation.
Sequential Brands shares are trading up 4.85% to $16.86 today.
Insight from TheStreet's Research Team:
Martha Stewart Living Omnimedia is a core holding of David Peltier's Stocks Under $10 Portfolio. In a recent alert, here is what Peltier had to say about the stock:
Model portfolio holding Martha Stewart Living Omnimedia (MSO:NYSE) is trading 22% higher today, changing hands around $6.23, following a media report of a potential takeover bid.
Dow Jones has reported that Sequential Brands (SQBG:Nasdaq) is near a deal to buy Martha Stewart. Sequential controls brands such as Avia, Heelys, Linens-n-Things and The Franklin Mint. No financial details were offered.
We don't own stocks purely on takeover speculation, but we believe that any potential takeover offer would likely be north of MSO's 52-week high of $6.72. In the meantime, we maintain our Two rating and $7 price target on the stock.