Hefner eyes deal to take Playboy private
Source: Agencies |
July 13, 2010, Tuesday
|
Print Edition
Print Edition
PLAYBOY Enterprises Inc said yesterday that its iconic founder is offering to buy the remaining shares of the media empire, taking the company private, in a deal that values the company at US$185 million.
Hugh Hefner, 84, founded Playboy in 1953 and turned the publication and its scantily clad models into a cultural mainstay. But in recent years, the company has faltered as advertising revenue dwindled.
Playboy said Hefner - now its editor-in-chief and chief creative officer who's known mostly for his silky pajamas and young, curvaceous girlfriends - plans to team up with private equity firm Rizvi Traverse Management LLC for the deal. Based on the number of shares outstanding on April 30, the proposal offers US$122.5 million, or US$5.50 for each share Hefner doesn't already own - a nearly 40 percent premium above Friday's closing stock price of US$3.94.
At the end of April Playboy had 33.6 million shares of stock outstanding, of which Hefner owns more than 4 million shares in two stock classes.
In his proposal letter to Playboy's board of directors, Hefner said he has no plans to sell his shares or the firm.
Hugh Hefner, 84, founded Playboy in 1953 and turned the publication and its scantily clad models into a cultural mainstay. But in recent years, the company has faltered as advertising revenue dwindled.
Playboy said Hefner - now its editor-in-chief and chief creative officer who's known mostly for his silky pajamas and young, curvaceous girlfriends - plans to team up with private equity firm Rizvi Traverse Management LLC for the deal. Based on the number of shares outstanding on April 30, the proposal offers US$122.5 million, or US$5.50 for each share Hefner doesn't already own - a nearly 40 percent premium above Friday's closing stock price of US$3.94.
At the end of April Playboy had 33.6 million shares of stock outstanding, of which Hefner owns more than 4 million shares in two stock classes.
In his proposal letter to Playboy's board of directors, Hefner said he has no plans to sell his shares or the firm.
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