Martha Stewart’s path to decline:
By providing a variety of home delicacies and creative life ideas, she single-handedly created a media kingdom that spans print, electronic and online media. American home life guru Martha Stewart was found guilty on all four counts by a Manhattan court jury in New York on the 5th for allegedly lying to investigators in a stock market insider trading case. She may face the fate of serving time in prison.
After the news was announced, imclone's stock price fell sharply. Stewart's former stockbroker, 41-year-old Bacanovich, was indicted on charges of conspiracy, perjury, making false documents and obstructing justice, but the jury found him not guilty of making false documents. Stewart and Bacanovich argued that they had reached a consensus to sell when the stock fell below $60.
But the federal government believes this is a fabricated story. The real reason why Stewart sold the stocks was that she learned from his broker that the CEO of imclone was preparing to sell the stocks he held and other inside information. . Imclone's CEO later admitted that the sale of his shares was based on the Food and Drug Administration's decision. He was sentenced to seven years in prison for insider trading.
Stewart was not convicted of insider trading, but instead accused her and her agent, Bacanovich, of lying about the transactions and altering records to support their story. The federal government may now force Stewart to leave the board of directors of the company she founded. Stewart had resigned as CEO when he was indicted, but remained on the board.
Extended information:
Martha’s company’s business projects are extremely diverse, including publishing magazines, producing TV programs, and selling various products such as cutters, garlic beaters, pillows, and sheets. This verdict poses a great threat to the media empire that Stewart has carefully built. Marketing experts say that because her name is so closely associated with her company, business would be severely affected if Stewart left.
Retail industry experts point out that even if Martha Stewart is no longer used as a trademark or company name, its homewares brand may be unable to recover. Within an hour of the court's announcement of the verdict, Martha Stewart Living Multimedia released a statement.
Stated that it will immediately convene the board of directors, carefully evaluate the situation and take appropriate actions.” The company is confident that it can continue to be a leading brand. The New York Times pointed out that the actions the company is considering include moving its magazines Even the entire company could be renamed.
Observers believe it will be difficult to continue to use the convicted Martha Stewart as a company brand, not to mention the competition among peers since Ms. Stewart was involved in a lawsuit a year and ten months ago. It's getting more intense.
A spokesman for CBS's main network, WCBS, said the company will withdraw the "Martha Stewart Living" program starting March 8. The stock price of the multimedia company closed down 23% after the verdict was announced.
Baidu Encyclopedia—Martha Stewart