Tech & Biz

Playboy is for Sale: $300 Million

by Jordan Yerman | May 22, 2009 at 09:04 am

1235 views | 14 Recommendations | 4 comments

Playboy is for sale. The iconic adult-mag company has fallen on tough times, between the plunging economy and the changing nature of media consumption, and word has emerged that the company is on the market. With an initial asking price of $300 million, though, nobody has stepped up.

The New York Post (reference below) states that the asking price is well beyond the actual market price so that Playboy founder Hugh Hefner can maintain his lavish lifestyle: the famous Playboy Mansion is owned by Playboy, the company, not Hugh Hefner the playboy.

While Hefner owns controlling interest in Playboy, it is a publicly-traded company, and therefore must consider overall shareholder benefit when deciding whether or not to sell.

The empire's iconic bunny ears are one of the most identifiable trademarks in the world, but the empire has fallen on hard times as the Internet and video-on-demand have eroded its core brand, the magazine.

Speculation on the fate of the publisher rose after longtime CEO Christie Hefner, who is also the daughter of founder Hugh Hefner, resigned in December, and interim CEO Jerome Kern told investors this year that he was open to a possible sale of the company.

Playboy's market value stands at $89 million, which is far less than I'd expect from such a globally ubiquitous brand. It's not the magazines that bring in the big bucks, but the lighters, t-shirts, hats, stickers, and other branded merchandise. For straight-up porn, consumers turn to the Internet.

Founder and controlling shareholder Hugh Hefner has resisted offers to sell in the past. He remains editor of Playboy Magazine and lives in the company-owned Playboy Mansion in Beverly Hills.

0 See all footage | View Slideshow

Share: email story | add to any | | facebook | stumbleupon

recommend This comment thread is now closed

Mary Richard

at 17:31 on May 22nd, 2009

Well, make no wonder there's no takers, if the FMV is only $89 million! I guess they don't need to sell too bad, huh?

From MediaPost: "It's not surprising the company's market capitalization has tumbled from $367 million in 2004 to about $75 million today.

Currently, 70% of the company's voting shares are controlled by founder Hugh Hefner, Wells Capital holds 10% and Fidelity owns 7%."

Alida Antonia Cornelius

at 10:04 on May 24th, 2009

There is so much nudity on the net now, Playboy magazine will be like other magazines which are trying to do something to survive..I sure wouldn't buy it, lol....there is too much sexual materials all over the net for free today, not like in the old days.

The market is vanishing for Playboy.

Alexander G (not verified)

at 14:07 on May 27th, 2009

I know why i have been close to cancel my suscription.

Not enough pictures in the magazine.. no wonder some people claim they read the articles.

And when the celebrities get nude.. I rather go for the new models. Skip the celebrities and save a few bucks for the shareholders.

And on a more personal note , i want at least one blonde modell on all 12 magazines of the year. And that damn 'the year in sex" or "sex in cinema" every year.. it stinks.

In an effort to give the magazine class and style and quality mr Hefner and his daughter managed quite well. I even find quality in the ads. But what about what the readers want ..that being . girls .. girls .. girls. Skip the sports and replace it with cheerleaders or beach volley or anything with females in it.

I download pictures from the internet , but that's no reason not to enjoy my favorite magazine every month. that can't be the reason people won't buy the mag.

I wish i had the bucks to buy the magazine and the mansion. Does the mansion include a few girls maybe ?

I hope someone worth our admiration acquires the entire enterprise.

Alexander.