Hugh Hefner In Bid To Take Playboy Private
HUGH HEFNER's recent offer seeking to take PLAYBOY ENTERPRISES INC into private ownership has drawn interest from rival MARC BELL, CEO of FriendFinder the company which currently owns the PENTHOUSE magazine. BELL who acquired PENTHOUSE in 2003 has indicated that they will make a formal offer in the near future.
In a recent press release from Playboy Enterprises Inc, it states that Hefner currently owns 69.5% of 'A class shares' and 27.7% of 'B class shares' and he will be looking to acquire all of the outstanding shares for $5.50 each. Hefner will be partnering with Rizvi Traverse Management LLC with regards to this bid.
In the proposal letter, Hefner advises the board of directors that out of Hefner's concerns for, amongst other matters, the Playboy Enterprises Inc brand, the editorial direction of the magazine and Playboy Enterprises Inc 's legacy, Hefner is not interested in any sale or merger of Playboy Enterprises Inc, selling His shares to any third party or entering into discussions with any other financial sponsor for a transaction of the nature proposed in the letter.
If a rival company did succeed it could lead to Hefner loosing control of the company he has been at the helm of for 57 years. Launched in 1953 the PLAYBOY magazine has always been at the forefront of men's magazines but over recent years has been finding it harder to make a profit in the face of increased online competition.
HUGH HEFNER's time as the figure head of PLAYBOY has been a colourful one, a life of wild parties at the famed Playboy Mansion and a string of Bunny Girl wives and girl friends.