Playboy Agrees to Go Private
(Playboy article updated with stock price information and comments from the company's board of directors.)
NEW YORK (TheStreet) -- Playboy (PLA) has agreed to Hugh Hefner's offer to take the company private for $6.15 per share.
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.
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