This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

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.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $130.28 0.47%
FB $81.53 -1.07%
GOOG $565.06 3.30%
TSLA $218.42 -0.08%
YHOO $44.52 1.89%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs