Playboy owner Hefner agrees to be taken private
Playboy Enterprises Inc has agreed to be taken private by founder Hugh Hefner, after he raised his bid by 12%, ending months of negotiations.
January 10, 2011 / 21:12 IST
Playboy Enterprises Inc has agreed to be taken private by founder Hugh Hefner, after he raised his bid by 12%, ending months of negotiations.
Icon Acquisition Holdings LP, a limited partnership controlled by Hugh Hefner, offered USD 6.15 per share for Playboy, valuing the company at about USD 180 mn, according to Reuters data.Hefner, who founded the company synonymous with bunny ears and centerfolds, owns around 70% of Playboy's Class A common stock and 28% of its Class B stock.In July, Hefner made its first offer to buy the company at USD 5.50 per share starting a bidding war that saw FriendFinder Networks, owner of Penthouse magazine, offering USD 6.25 per share.A company synonymous with bunny ears and centerfolds, Playboy has been struggling to put its business back on course as circulation and advertising revenues decline with people flocking to the Internet for free pornography.Shares of the company were trading up 92 cents at USD 6.12 in trading before the bell on Monday on the New York Stock Exchange. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
