Hugh Hefner Planning to Take Playboy Private

The legendary founder of Playboy Enterprises has offered to buy back all outstanding shares of the adult entertainment company, which has been public since 1971.

Text Size:

Private party: Playboy founder Hugh Hefner plans to take his company private after nearly four decades.Hugh Hefner, the legendary founder of Playboy Enterprises, has offered to acquire all outstanding shares of his company for $5.50 per share in cash. The pajama-loving entrepreneur owns 69.5 percent of Playboy's Class A common stock and 27.7 percent of the Class B common stock. He has offered to buy the rest at a total cost of $185 million.

The announcement boosted Playboy's stock more than 40 percent today, closing at $5.55. On Friday, shares closed at $3.94.

The Hef, 84, founded the famous adult entertainment magazine in 1953. Centerfolds have included Marilyn Monroe, Pamela Anderson, Anna Nicole Smith and Kim Kardashian. Although the magazine's circulation has dropped to just over 2 million, Playboy Enterprises brought in $21 million last year from licensing the brand, and another $9.9 million from the company's television properties.

The company went public in 1971. Playboy Enterprise's board of directors has not yet made a decision regarding Hefner's proposal, and now investors are expecting a competing bid from the owners of Penthouse.

Tags: Christie Hefner, Hugh Hefner, News, Penthouse, Playboy Enterprises, Playboy going private, Playboy stock

Comments (Page 1 of 1)


Tip of the Day

  • August 8 2011
    "Today's businesses need to recognize that customer loyalty goes a long way. Re-evaluate your approach to customer service. If you are...
    Continue Reading
  • August 5 2011
    "People love seeing who is behind the company and they love hearing what you have to say -- not necessarily selling but giving tips on what...
    Continue Reading
  • August 4 2011
    "Small businesses leaders should always devote time and effort to involving themselves in their local communities. Whether you're in a large...
    Continue Reading
  • August 3 2011
    "You need to recognize talent and reward your key executives within your company. One of the key strategies to maintaining top talent is to...
    Continue Reading
View all Tips »

Latest OPEN Forum Insights

Presented by american express

Coming soon
Latest Videos
View all »
Expert Take
View all »