Playboy Weighs Hef's Buyout Offer
Playboy Enterprises Inc. has formed a board committee for the purpose of evaluating a buyout offer from Hugh Hefner. Hef, who owns about 70 percent of the company shares, made an offer last month to buy the remaining shares for $5.50 each and take Playboy private. Media Life reports:
Hefner’s bid was quickly countered by FriendFinder CEO and Penthouse owner Marc Bell, who submitted a proposal worth even more for the beleaguered media company.
Playboy insisted yesterday that the formation of the committee does not guarantee that Hefner, who wants to buy up the 30 percent of Playboy shares he does not own, will get the property.
Still, it at least indicates that Playboy, which installed a new CEO last summer in a bid to turn around its flagging fortunes, is taking Hefner’s $185 million bid seriously.
We’re crossing our fingers for you, Hef. Penthouse and Playboy would make for one unholy alliance.
