Playboy Enterprises to go private? - Licensing.biz

Playboy Enterprises to go private?

Founder Hugh Hefner looking to buy out investors, but rival Penthouse is also in the frame.
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The founder of Playboy, Hugh Hefner is seeking to buy out the other investors and take the company private.

Hefner has offered to acquire all of the outstanding shares of Class A and Class B common stock of Playboy Enterprises not currently owned by him for $5.50 per share in cash.

Hefner is planning to partner with Rizvi Traverse Management for the transaction.

However, internet stories this morning also suggest that men's magazine Penthouse is working on a rival offer.

In his proposal letter, Hefner stated that out of his concerns for, among other matters, the PEI brand, the editorial direction of the magazine and PEI's legacy, he was not interested in any sale or merger of the company, selling his shares to a third party or entering discussions with any other financial sponsor for a transaction of the nature proposed by him.

The news follows PEI's announcement at the end of June that it was to downsize its organisational structure, costing it $3 million in the 2010 second quarter as a result.

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