Transcript: Martha Stewart's Susan Lyne

This is a partial transcript from "Your World with Neil Cavuto," April 26, 2005, that was edited for clarity.

NEIL CAVUTO, HOST: She couldn't strike a deal to reduce her sentence in court, but, when it comes to deal making in business, Martha Stewart has got that down pat. The question now is, will those deals bring profits back today?

Shares of Martha Stewart Living Omnimedia (MSO) are picking up a bit, as the company's narrowed is loss in the first quarter, a bit bitter than many thought.

With us now, the woman who helped orchestrated that, Susan Lyne. She is actually the company's CEO.

Susan, good to have you.


CAVUTO: I always say that you get bugged all the time that you look so much like Martha Stewart.


Maybe that's why you got the job. But you pulled some great numbers out. So, congratulations for that.

LYNE: Thank you.

CAVUTO: The company, almost to the moment Martha Stewart came out of prison, has been downhill stock wise. What's the deal?

LYNE: Well, actually, the stock started coming up I think when Martha announced that she was going to go and serve her term at Alderson. And, in fact, we look much less at the stock price right now than at our long-term growth potential. That's what we are really focused on as a company, is, how do we build long-term value for stockholders? And that is what we're doing.

CAVUTO: So, who is really running it, Susan? You are the day-to-day manager, obviously.

LYNE: Right.

CAVUTO: What impact or input do you get from Martha?

LYNE: Martha is very involved in all the areas of our business. She has enormous energy. She's got tons of new ideas now. And she really energizes everyone there.

CAVUTO: How many hours a week does she work?

LYNE: Well, she's allowed to work 48 hours a week outside of her home.

CAVUTO: Right.

LYNE: But she's on e-mail constantly. And she does a lot of meetings at the house. She has thrown herself into this in every possible way. She knows that she needs to be personally involved to bring this company back.

CAVUTO: She got in a big hullabaloo, some prosecutor said, with this "TIME" 100 anniversary that they had. She attended this gala with all these other hot shots. I wasn't invited, by the way, so I don't know how big a party it could have been.

LYNE: I wasn't either.


CAVUTO: But a lot of people saying she exceeded this by going to this party.

LYNE: You know, I think that's wrong.

We spend a lot of time talking about how to best use her 48 hours to build the company back. And this was an important event. She had been named one of the 100 most influential people anywhere.

CAVUTO: Yes. I was 101. Did you know that?


CAVUTO: So, it wasn't a big deal? She hadn't exceeded the 48 hours and everything?

LYNE: No, no, no, not at all. And she clears everything with her parole officer. So, this was a non-issue, I think.

CAVUTO: When she does get this whole house arrest thing out of the way, has she said what she plans to do and how she'll work with you, deal with you?

LYNE: Well, she's already working with me.


CAVUTO: Absolutely. Absolutely. But I imagine more than 40 or 48 hours a week.

LYNE: True.

But I think we are all on the same page about what we need to do, how to build back our current businesses and how to use the brand and our content and our ability.

CAVUTO: Is she still the brand? Do you think the company could do as well if she weren't at the company?

LYNE: I think Martha is the most valuable person at the company right now. She is a brand. She is a personal brand. And the Martha Stewart name...


CAVUTO: If she weren't at the company, Susan, would it be toast for you guys?

LYNE: No, no, no. That's a different issue, but what we do recognize is that Martha Stewart is enormously valuable to our company, and not just as a brand, but also as a person, as a true innovator. So, the more we can involve her, the more we can use her eye and her great business sense. She knows how to turn...

CAVUTO: She's made some great deals. The Sirius Radio thing, that was a smart thing and all that.

But I am wondering whether she fears in her heart of hearts, maybe you fear in your heart of hearts, that there's only so much leverage off the name, that it might be declining.

LYNE: No, not at all.

I think that this brand has enormous equity. I think the arena we operate in, home and lifestyle, is a burgeoning arena. And there are so many new media, new platforms for us to be able to reach out to, to both our current audience and new customers. And that's exactly what we've been doing with the Sirius Radio deal and then our Warner Home Entertainment deal this morning, where we'll be launching a line of how-to DVDs, 16 offerings a year, that, again, I think will allow us to bring this brand to people where they are when they need it.

CAVUTO: All right.

Susan, thank you very much. Appreciate it, Susan Lyne, Martha Stewart Living Omnimedia's CEO. Good to see you.

LYNE: Thank you.

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