Martha Stewart Living Omnimedia Inc. said Wednesday it has signed a consulting agreement with reality show producer Mark Burnett to refashion the namesake founder’s lifestyle television show and collaborate on other television projects.
The agreement also includes the development and production of a prime-time network television series featuring Stewart, who is expected to return to her multimedia empire next March after completing a five-month prison sentence for lying about a stock sale.
Burnett, who produces such shows as “The Apprentice” and “Survivor,” said that he, Stewart and the company will “explore new ways to communicate that unique combination of teaching, usefulness, quality, style, and impeccable taste that millions of viewers have enjoyed for over a decade.”
Stewart was convicted in March of lying about why she sold 3,928 shares of ImClone Systems Inc. on Dec. 27, 2001 — the day before a negative announcement about the company that sent the price plunging.
Shares in her company rose last week, following Stewart’s announcement Thursday that she wants to serve her prison term as soon as possible rather than wait for her appeal’s outcome. She is slated to begin her jail term on Oct. 8 but plans to continue to appeal her conviction.
The move is designed to end the uncertainty that has dogged the company and has made advertisers flee.
“Now that we are able to anticipate Martha’s return, we are delighted to move forward with the evolution of Martha’s syndicated daily show and offer new network special programs,” said Sharon Patrick, president and chief executive of Martha Stewart Living.
Shares of Martha Stewart Living gained 17 cents Wednesday to close at $14.98 on the New York Stock Exchange, before the television agreement was announced, then gained $1.29 in extended trading. The stock had been trading around $19 per share before Stewart’s name was tied to the ImClone scandal.
In connection with the consulting agreement, Martha Stewart Living issued Burnett a warrant to purchase up to 2.5 million shares of the company’s class A common stock at an exercise price of $12.59 per share. The warrant will vest and become exercisable subject to milestones relating to the broadcast of the prime-time series and production of a new series of Martha Stewart Living or a successor program.