Martha Stewart Living Omnimedia Spikes on Buyout Rumors

Martha Stewart Living Omnimedia (NYSE: MSO) was up more than 30% in morning trading after the company said that it had hired Blackstone Advisory Partners to evaluate possible investment partners and explore "other opportunities."

In a statement today Martha Stewart said: "As the founder and largest stockholder, I fully support this initiative to take our business and iconic brand to the next level." Martha Stewart also said that she would rejoin the board in the third quarter, following a 2006 settlement with the Securities and Exchange Commission that prohibited her serving as a director for five years.

Martha Stewart Living also named Lisa Gersh as its president and chief operating officer. Gersh was cofounder of the women-focused television network Oxygen Media and she joins the company from NBC, which acquired Oxygen in 2007.

Martha Stewart Living is trying to revive sales growth after three years of falling revenue that accompanied a downturn in advertising and Stewart's legal difficulties.

Shares opened today at $4.49 and rose to $5.02 in morning trading.