For more than a year, adult entertainment company Playboy Enterprises (PLA) has been looking for someone, anyone, to save it, but in the end, its savior came from within. Last July, founder Hugh Hefner offered to take Playboy private, and Monday, the company finally announced it has agreed to be bought out by Icon Acquisition Holdings, which is controlled by Hefner, for $6.15 per share.

The $6.15 price represents a 18.3% premium over Friday's closing price of $5.20 and a 56.1% premium over the closing price on July 9, 2010, the last trading day before the proposal was first announced. Hefner's offer values the company at around $207 million. Sunday night, Playboy's board unanimously approved the agreement and said it would recommend the transaction to the stockholders.

"With the completion of this transaction, Playboy will come full circle, returning to its roots as a private company," said Hefner. "The brand resonates today as clearly as at any time in its 57-year history. 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."

CEO Scott Flanders will remain with the company in his current position and maintain a significant equity investment in Playboy.

Hefner, who founded the magazine in 1953 and picked Marilyn Monroe as the first centerfold, controls approximately 69.5% of the Class A (PLA.A) shares and 27.7% of the Class B shares. Under the terms of the agreement, Hefner will buy the stock he doesn't already own of both classes at $6.15 a share, and transfer all shares he already owns to the purchaser. The tender offer should begin no later than Jan. 21, and expire 20 business days after.

Icon Acquisition has obtained equity commitments for the transaction from an affiliate of Rizvi Traverse Management and a debt commitment for the transaction from affiliates of Jefferies & Co. The closing of the transaction is subject to customary conditions, but not to a financing condition, the release stated. The transaction is expected to be completed around the end of the first quarter.

Playboy is one of the most recognized and popular consumer brands in the world, the company says, but it has experienced years of declining sales and earnings. The betting now is that it could operate better as a private company. PLA shares jumped more than 17% in premarket trading Monday to $6.09.

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They need to have Sara Palin, Snookie Polozi,and other's to make the Magazine more in demand.

January 11 2011 at 7:51 AM Report abuse +1 rate up rate down Reply

"Rich bachelors should be heavily taxed. It is not fair that some men should be happier than others." Oscar Wilde

January 11 2011 at 3:11 AM Report abuse rate up rate down Reply

I am afraid Playboy's time has come...and gone. With the Internet and porn there, it's just over.

When HH dies, it will be gone.

January 11 2011 at 3:02 AM Report abuse +1 rate up rate down Reply
L R Adams

To say this is a poor business decision is an understatement. He has been ill advised.

January 10 2011 at 9:55 PM Report abuse -1 rate up rate down Reply

Hef is a senile old fool and his new wife is a gold digger. Sorry, just stating the obvious.

January 10 2011 at 9:29 PM Report abuse -1 rate up rate down Reply

Going, going, GONE Playboy is such a dead subject. The plastic age is over. The magazine is as old as Hef. It's time to habg it up Playboy!!!!

January 10 2011 at 9:04 PM Report abuse +1 rate up rate down Reply
1 reply to djrock99's comment

oops *hang

January 10 2011 at 9:05 PM Report abuse rate up rate down Reply

i have never liked playboy but to each his own

January 10 2011 at 8:22 PM Report abuse +2 rate up rate down Reply

The biggest problem with Playboy is that Hugh Hefner still wants us to think he's only 42. Who wants to look at 3 women hugging an old geezer like Hefner as though it's real. It reminds me of when Marriott owned Roy Rogers restaurant which Roy had a hand in and insisted he be in the commercials. But the young kids couldn't identify with him. Ironically, Roy had to go into the hospital for some work on his heart and Marriott went to work on drawing young people into the fast-food chain with some new commercials featuring young people. If Hefner wants Playboy to survive, he's got to realize, he's in the way.

January 10 2011 at 7:53 PM Report abuse -1 rate up rate down Reply

Hefner is a multi millionaire while most of you mouth breathers are making 7/9 dollars an hour...........Playboy just opened a club/casino in the worlds gambling mecca.............No not Las Vegas although they have a private club there too but in Macau............Asia is where all the high rollers are now and Macau is where the action is..........There is no recession in Asia....Playboy will be making it's money off booze, gambling, merchandizing (one of the most famous Logos in the world) and his TV network of reality shows and Playboy adult DVD's..........The magazine is now just an advertizing prop even though worldwide it still has a circulation of a few million..............He is going to make millions without having to listen to stockholders and a board of directors.....

January 10 2011 at 7:37 PM Report abuse rate up rate down Reply

I think the name Playboy is marketable. Possibly a line of clothing or something that hasn't been explored yet. It is a history with mystery. Look how many James Bond movies have come around. Even the lame ones make money.

January 10 2011 at 7:31 PM Report abuse rate up rate down Reply