said that Hugh Hefner has offered to acquire all of the outstanding shares of Class A and Class B common stock he does not currently own for $5.50 per share in cash. Hefner owns 69.5% of Playboy's Class A common stock and 27.7% of its Class B common stock. In his proposal letter, Hefner expresses concern over the editorial direction of the magazine and Playboy's legacy, saying he was not interested in a sale or merger of Playboy.
Hefner's going-private offer comes months after buyout talks between Playboy and
dissolved. Late last month, Playboy said it is downsizing its organizational structure and expects to record a restructuring charge of approximately $3 million in the second quarter as a result. The company did not disclose how many jobs were being cut.
Shares of Playboy surged by $1.28, or 32.5%, to $5.22 in the premarket session. The three-month average daily volume for Playboy is 166,000, according to Yahoo! Finance.
jumped by 44 cents, or 10.2%, to $4.75 in the premarket session after the company preannounced fourth-quarter results, saying it expects earnings of 2 cents to 4 cents a share. That compares to a single analyst estimate for a profit of a penny a share. The 50-day average daily volume for Tuesday Morning is 649,000, according to the
-- Written by Robert Holmes in Boston
Follow Robert Holmes on
and become a fan of TheStreet.com on