Macy’s (M) May Try To Block Martha Stewart (MSO) Deal With PC Penney (JCP)

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By Douglas A. McIntyre Published
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Macy’s (NYSE: M) believe its has some rights to Martha Stewart products which would be violated by a joint venture deal between Martha Stewart Living Omnimedia  (NYSE: MSO) and JC Penney (NYSE: JCP) . The venture includes a deal for Penney to buy 16.6% of MSO. This announcement causes MSO share to advance 33%.

Macy’s may take its objections to court. The Penney deal may cause a collapse in the value of Martha Steward goods which have been carried by Macy’s

The objections may not be important. Penney and Martha Stewart are each viewed as weak companies and weaker brands. The JV may do little to reverse the fortunes of either. MSO has struggled with its print media division. Penney recently fired its CEO Myron Ullmann and replaced him with former Apple (NASDAQ: AAPL) retail leader Ron Johnson. The new management cannot offset a drop in Penney sales which has been caused by poor product purchases and competition by Macy’s and big box retailers.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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