Would Hugh Hefner ever sell his bunny-eared empire? Maybe.
The New York Post‘s Keith Kelly hears that Playboy Enterprises is looking for a buyer willing to shell out $300 million for the public company.
However, big name buyers like Apollo Capital Partners and Providence Equity Partners haven’t made moves to pick up Playboy Enterprises, most likely because the company’s market capitalization is only around $100 million but they are seeking three times that in order to entice Hef to sell, Kelly said. Not surprisingly, it takes a lot of money to keep the mansion running.
Playboy has been struggling in recent months. In October, the company cut 80 jobs, and then CEO Christie Hefner departed in December. Earlier this year, Playboy moved to Chicago, but that has not quieted rumors about the magazine’s future.
Earlier this month, the company announced more bad news, reporting that print and digital revenues were down 26 percent.
If Playboy Enterprises can’t find any other way to turn their business around, a sale might be just what they need to keep the dream of the Playboy lifestyle alive. But if he can’t find someone to purchase the company, Hef might have to come up with a new “Girls Next Door” just to pay the bills.
Earlier: Is Playboy Screwed?