Hefner Seeks to Take Playboy Private

LOS ANGELES — Playboy Enterprises' Hugh Hefner is looking at taking the company he founded private.

Chicago-based Playboy received a proposal from Hefner to buy all the Class A and Class B shares he doesn't currently hold for $5.50 each. Hefner currently holds 69.5 percent of the Class A and 27.7 percent of the Class B shares.

Playboy said that if the deal continues on, a panel of independent directors would review the bid.

With the offer, Hefner said he is not interested in selling or merging Playboy. Nor would he sell shares to a third party or enter into talks with any other financial suitor. Hefner cited his concern for the company's brand, the editorial direction of the magazine and the adult company's legacy.

With Monday morning's offer, the company is valued at $185 million. Just two weeks ago, Playboy said it would downsize its operations and take a restructuring charge of about $3 million in the company's second quarter.

Also Monday, FriendFinder Networks said it plans to make an offer for Playboy, according to the Wall Street Journal.

"We've had an interest in Playboy for a very long time, and we're looking at an alternative proposal," FriendFinder CEO Marc Bell said.

Century City, Calif.-based investment strategy firm Rizvi Traverse Management is facilitating Hefner's offer.

According to Playboy, Rizvi Traverse informed Hefner that it had contacted major lenders regarding potential financing and that Rizvi Traverse is "highly confident ample financial resources" will be available to complete the transaction.

"The proposal letter states that Hefner and Rizvi Traverse contemplate that the definitive agreements would not contain a financing contingency," Playboy said in a statement.

At post time, Playboy common shares were priced at $5.55, up $1.61 or 41 percent, from Friday's trading.

Related:  

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Roxie Rae Relaunches Site Through XSiteAbility

Roxie Rae has relaunched her site through XSiteAbility.

Nicole Nixon Stars in Latest From Immoral

Nicole Nixon stars with Matt Bird, Dean Van Damme, and "Porno Dan" Leal in a new three-part release from Immoral Productions.

Kiki Cali Toplines 'Pleasure Vixens 4' From BAM Visions

Kiki Cali headlines the fourth volume of "Pleasure Vixens," co-directed by multi-XMAs winner Mick Blue and Maestro Claudio, aka BAM Visions, from Evil Angel.

Brianna Coppage Makes Her WIFEY Debut

Creator Brianna Coppage stars with her husband Phillip and Jax Slayher in the latest release from Vixen Media Group studio imprint WIFEY.

Isa Bella, Selena Ivy Topline 'Lesbian Sex 28'

Isa Bella and Selena Ivy headline the latest release from Girlfriends Films, titled “Lesbian Sex 28.”

Catherine Knight Stars in Latest From Brazzers

Catherine Knight stars in the latest release from Brazzers, titled "GRWM (To Fuck)."

Federal Appeals Court Vacates FTC 'Click to Cancel' Rule Pending Review

The U.S. Court of Appeals for the 8th Circuit on Tuesday vacated the Federal Trade Commission’s “click-to-cancel” rule aimed at making it easier for consumers to cancel online subscriptions, pending further review.

Elegant Angel Premieres Nicole Kitt Showcase 'Cats Eye'

Nicole Kitt gets the spotlight in a new four-part showcase release from Elegant Angel.

Private Releases 'The Love Hotel 2'

Private has released “The Love Hotel 2,” directed by Dave Menich.

Show More