'Playboy' Takes Its Parts Private
The publisher of Playboy magazine announced Monday that it agreed to founder Hugh Hefner and Icon Acquisition Holdings taking the company private. "The price of $6.15 a share is an 18 percent premium over Friday’s closing price and values the company at about $207 million," reports CBS Local.
Penthouse magazine also made an offer, valued at $210 million, for Playboy Enterprises Inc. However the octogenarian was able to fend off the bid as Playboy’s largest shareholder with approximately 70 percent of the company’s voting shares and 28 percent of the nonvoting stock.
The magazine has been struggling with Web competition, readership and advertising. Playboy management is looking to transform the organization into a brand management company, leaning on licensing revenue and Playboy imagery.