(Playboy article updated with stock price information and comments from the company's board of directors.)
The Playboy magazine publisher announced today that it has entered into an agreement with Icon Acquisition Holdings, a limited partnership controlled by Hefner, to buy the company's shares for $6.15 a piece, which represents a 18.3% premium over Friday's closing price of $5.20.
The bid comes in above Hefner's proposal to acquire all outstanding shares at a purchase price of $5.50 a share in July, 2010.
Hefner, who founded Playboy Enterprises in 1957, currently owns 69.5% of the company's Class A stock and 27.7% of Class B stock. "With the completion of this transaction, Playboy will come full circle, returning to its roots as a private company. The brand resonates today as clearly as at any time in its 57-year history," Hefner said in a statement. "I believe this agreement will give us the resources and flexibility to return Playboy to its unique position and to further expand our business around the world." Hefner indicated that he wasn't interested in selling Playboy to a third party when he made his first bid to take the company private in July. Playboy CEO Scott Flanders will stay in his current position and plans to maintain a significant equity investment in the company.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV