Known to millions as the Queen of Domestic Arts, Martha Stewart is a successful entrepreneur who built a media empire from scratch out of the old adage "there is no place like home."
Key Takeaways:
- Down from over a billion, Martha Stewart's net worth is estimated to be in the vicinity of $400 million as of 2020.
- Martha Stewart first became a billionaire when her company, Martha Stewart Living Omnimedia, went public in 1999.
- Due to obstruction of justice, making false statements, and conspiracy of lying, Stewart served five months in jail in 2004.
- In 2015, Martha Stewart Living Omnimedia was sold to Sequential Brands Group for $350 million.
- Sequential Brands Group sold Martha Stewart Living Omnimedia in 2019 to Marquee Brands for $175 million.
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Martha Stewart first became a self-made billionaire when her company, Martha Stewart LivingOmnimedia, went public in 1999. The initial public offering raised $1.9 billion and the stock climbed to an all-time high of $39.75 per share the following day. Her net worth did significantly drop in the early 2000s but has since slightly recuperated. Her fortune in 2020 is estimated to besomewhere around $400 million.
Duringher pinnacle as a prominent media mogul, she found her name among the world's wealthiest and powerful business leaders on the Forbes Billionaireslist.
Early Life and Education
Martha Stewart was born on Aug. 3, 1941, in Jersey City, New Jersey. Even when she was just a child, Martha was making money. When she was 10 years old she often found herself babysitting for extra change.
At 13, she modeled on the side and regularly appeared in television commercials. One of her clients was the luxury fashion company, Chanel. By the time she was 24 and a recent college graduate from Barnard College, she wasmaking well over six figures a year as a stockbroker in New York.
Stewart's billion-dollar empireactually started out as a small home-based catering business thatshe foundedwith a partner. Shortly after, the business became very successful,and Martha bought out her partner's equity stake.
Notable Accomplishments
Publishing Powerhouse
In 1977, Martha had been hired to cater for a book release event. At the party,she met Alan Mirken, who was the head of Crown Publishing Group, asubsidiaryof Random House. Following that night, the two beganhaving discussions regarding the possibility of publishinga cookbook based on the recipes that Marthaused for her catering events. That idea bore fruit when Martha's first book, Entertaining, was publishedin 1982. The book went on to sell more than 625,000 copies.
From 1983 to 1989, Martha published a number of other cookbooks for another Random House imprint. During that time she was slowly becoming a household name throughout the United States. In addition to contributing columns on home keeping to newspapers and magazines, Martha began to regularly appear on a handful of well-watched television programs such as Larry King Tonight and The Oprah Winfrey Show.
Martha Stewart Living Magazine
By the early 90s, Martha Stewart was one of the most recognized public figures among the American working class;however, she was not completely satisfied. In an attempt to further extend her reach and expand her brand, shesigned a magazine deal with Time Inc.
With a quarter of a million subscribers signed up for the initial issue, Martha released Martha Stewart Living magazine in late 1990. Subscriptions for the magazine quickly grew to over two million.
Martha Stewart's career history includes being a stockbroker, starting her empire through a catering business, publishing successful cookbooks, and founding her own magazine.
Originally started as a quarterly magazine, Time soon began to publish a new issue every month.Each issue featured a variety of cooking recipes, decoration instructions, craft ideas, and homemaking guides.
Billionaire Status
Martha may havebeen the face behind her magazine and other merchandise, but she did not completely own all the rights to them.Time Warner, for example, owned and published the Martha Stewart Living magazine.
This all changed in 1997 when Stewartraised the moneyto purchase the rights to all of her related brands. Martha borrowed $85 millionto finance the acquisition of the magazine alone. She had formed Martha Stewart Living Omnimedia in 1996, which became the holding company that housed all of her projects, publishing, and merchandise.
After two years afterthe formation of Martha Stewart Living Omnimedia, Stewartlisted the company on the New York Stock Exchange. This allowed her many fans and followers across the country to actually own a piece of Martha's media powerhouse.
On the day the company wentpublic, Martha Stewart Living Omnimedia's stock opened at $18 per share. It soared over the next year, a spike that made Martha's 70% stake in the company worth more than a billion dollars.
Criminal Conviction
Stewart's life and her media empire were both interrupted when Stewart was convicted of obstruction of justice, making false statements, and conspiracy for lying to investigators about her sale of shares of ImcloneSystems in 2001, a day before the company announced a negative Food and Drug Administration ruling about one of its cancer drugs that prompted a massive sell-off in the stock.Sheserved five months in a federal correctional facility following the conviction in 2004.
Loss of Value
Martha Stewart Living Omnimedia, once valued at $2 billion, was sold for $350 million in 2015 and then again for $175 million in 2019.
On May 31, 2018, former President Trump indicated that he might grant Stewart a presidential pardon.While Stewart never faced insider trading charges for the sale, she paid $195,000 to settle civil charges with the Securities and Exchange Commission.
How Did Martha Stewart Get Famous?
Martha Stewart started as a model, then became a stockbroker, a cookbook author, a publisher, and a media icon.
What's Martha Stewart's Net Worth?
As of 2020, Martha Stewart's net worth is estimated to be around $400 million.
How Long Was Martha Stewart in Prison?
In 2004, Martha Stewart was convicted of obstruction of justice, making false statements, and conspiracy. She served five months in a federal correctional facility.
What's the Relationship Between Martha Stewart and Snoop Dogg?
Martha Stewart and Snoop Dogg met on Martha's television show in2008. Since, they have appeared together many times on talk shows, game shows, and other events.
The Bottom Line
In June 2015, Martha Stewart Living Omnimedia, once valued at more than $2 billion,agreed to be acquired bySequential Brands Group (SQBG) for just shyof$350 million. In 2019, Sequential Brands sold Martha Stewart Living Omnimedia to Marquee Brands for $175 million.
Though the winds might seem to have shifted slightly for Stewart, noone can dispute that she made an indelible mark in the media industry as well as thelives of countless Americans looking to brighten their livesin the household.
