Book deal heralds Martha revival

Since jail, Ms Stewart has signed a welter of new deals

The career of Martha Stewart - from US domestic icon to jailbird - seems to hold some pretty obvious lessons for any would-be tycoon.

So it is no surprise that Ms Stewart, currently under house arrest, is to cash in on her notoriety with a book of business advice.

The book, to be known as "Martha's Rules" is being published in October.

Her goal, Ms Stewart says, "is to help people turn their passions into successful businesses."

Ms Stewart, who served a brief jail sentence for obstructing justice over a share deal, will receive a reported $2m advance.

Straight and narrow

The book deal represents the latest stage in Ms Stewart's rapid rehabilitation since her release from prison in March.

Her magazine, TV and homewares empire, Martha Stewart Living Omnimedia (MSLO), has seen its share price nearly triple in the past year.

A 24-hour Martha Stewart Living channel on Sirius Satellite Radio is planned.

There are also plans for a range of how-to DVDs and new merchandising deals over and above the existing arrangement with Kmart, which sells her homewares.

Ms Stewart - covergirl for the August issue of Vanity Fair - is already hard at work on two TV series: her syndicated daytime show, Martha, and a new version of hit series The Apprentice.

Profit challenge

But despite the good news, some challenges remain at MSLO.

Today's success seemed unattainable last year

Although its market value is close to where it was in 2000 when it was profitable, it is expected to report its eighth consecutive quarterly loss on 27 July.

Analysts range from those who think its shares, currently trading in the $20-30 range are worth only $7, to those who think Ms Stewart's level of exposure makes it worth $25 or more.

The firm may benefit from new management including chairman Charles Koppelman, a former music executive, and president and chief executive Susan Lyne, who developed ABC's hit Desperate Housewives.

Ms Stewart, however, who was seen until recently as a potentially lethal embarrassment for the firm, now looks like its greatest asset.