Penthouse wants a piece of Playboy... - GoFuckYourself.com

NikKay · 07-12-2010, 12:46 PM

See: http://www.cnbc.com/id/38203391

Playboy Enterprises looks likely to be in play, with opposing bids from founder Hugh Hefner and the company that owns long-time rival Penthouse magazine. Shares of Playboy [PLA 5.48 1.54 (+39.09%) ] shot up 42 percent in New York Stock Exchange mid-day trade.

Hefner on Monday offered $5.50 in cash for each of the shares he doesn't already own, a premium of about 40 percent to the Friday closing price of the Class B shares. The bid values Playboy at $185 million.

Hefner currently owns around 70 percent of Playboy's Class A common stock and 28 percent of its Class B stock.

Shortly after the announcement, Friend Finder Network, the owner of Penthouse, said it was preparing to make a counteroffer later on Monday. Friend Finder Chief Executive Marc Bell said Hefner's offer "dramatically" undervalues Playboy.

The offers for Playboy come as the company struggles with a drop in advertising revenue and a decline in readership at its iconic flagship magazine.

In late June, the company said it cut staff to save $3 million annually.

More than a year ago Playboy appointed Scott Flanders, the former chief executive officer of Freedom Communications and the publisher of the Orange County Register, as its top executive. Previously, Christie Hefner, Hugh Hefner's daughter, ran the company.

Speculation mounted that Hugh Hefner was looking to exit the business he has controlled for more than 50 years as Playboy searched for a potential buyer.

In December, Playboy was in talks to sell itself to Iconix Brand Group [ICON 14.86 0.19 (+1.3%) ], a company that licenses clothing brands such as Joe Boxer, but no deal was reached. Playboy has been trying to capitalize on its famous bunny ears logo by signing licensing deals with clothing makers, casinos and clubs as it moves away from its reliance on print advertising from its magazine.

Playboy said Hefner is partnering with Rizvi Traverse Management, which has said it will raise financing for the transaction from major lenders.

Hefner said in his proposal letter that he is not interested in any sale or merger of Playboy Enterprises, selling his shares to a third party or entering into discussions with any other financial sponsor for a similar transaction, according to the company.

Wizzo · 07-12-2010, 12:49 PM

AFF owning Playboy, haha you go Mark Bell!

JFK · 07-12-2010, 12:52 PM

Quote:

Originally Posted by Wizzo

AFF owning Playboy, haha you go Mark Bell!

That would be a Coup

Semi-Retired-Dave · 07-12-2010, 12:59 PM

Their stocks went up today because of all this. Not bad.

Vendzilla · 07-12-2010, 01:04 PM

Wow, just wow

Forest · 07-12-2010, 01:36 PM

Quote:

Originally Posted by CyberAge-Dave

Their stocks went up today because of all this. Not bad.

there stock originally went up do to hef's 5.50 a share offering to buy back all shares to take the company private i believe

all this penthouse bid does is potentially increase the ask price for the outstanding shares

does penthouse have 200-400 million dollars to buy playboy?

Vendot · 07-12-2010, 02:26 PM

Quote:

Originally Posted by Forest

does penthouse have 200-400 million dollars to buy playboy?

Good q...... what were all those "FFN is broke" threads about before?
I thought they were very, very short on cash not the opposite.

DatingGold · 07-12-2010, 05:21 PM

Don't believe the hype

CIVMatt · 07-12-2010, 06:32 PM

Wouldn't the two companies have to merge at some point to simply stay alive?

KillerK · 07-12-2010, 10:49 PM

Quote:

Originally Posted by CIVMatt

Wouldn't the two companies have to merge at some point to simply stay alive?

I wouldn't want Penthouse owning me, look at what they did to iBill.

07-12-2010, 12:46 PM	#1
NikKay Confirmed User Industry Role: Join Date: Aug 2001 Posts: 1,642	Penthouse wants a piece of Playboy... See: http://www.cnbc.com/id/38203391 Playboy Enterprises looks likely to be in play, with opposing bids from founder Hugh Hefner and the company that owns long-time rival Penthouse magazine. Shares of Playboy [PLA 5.48 1.54 (+39.09%) ] shot up 42 percent in New York Stock Exchange mid-day trade. Hefner on Monday offered $5.50 in cash for each of the shares he doesn't already own, a premium of about 40 percent to the Friday closing price of the Class B shares. The bid values Playboy at $185 million. Hefner currently owns around 70 percent of Playboy's Class A common stock and 28 percent of its Class B stock. Shortly after the announcement, Friend Finder Network, the owner of Penthouse, said it was preparing to make a counteroffer later on Monday. Friend Finder Chief Executive Marc Bell said Hefner's offer "dramatically" undervalues Playboy. The offers for Playboy come as the company struggles with a drop in advertising revenue and a decline in readership at its iconic flagship magazine. In late June, the company said it cut staff to save $3 million annually. More than a year ago Playboy appointed Scott Flanders, the former chief executive officer of Freedom Communications and the publisher of the Orange County Register, as its top executive. Previously, Christie Hefner, Hugh Hefner's daughter, ran the company. Speculation mounted that Hugh Hefner was looking to exit the business he has controlled for more than 50 years as Playboy searched for a potential buyer. In December, Playboy was in talks to sell itself to Iconix Brand Group [ICON 14.86 0.19 (+1.3%) ], a company that licenses clothing brands such as Joe Boxer, but no deal was reached. Playboy has been trying to capitalize on its famous bunny ears logo by signing licensing deals with clothing makers, casinos and clubs as it moves away from its reliance on print advertising from its magazine. Playboy said Hefner is partnering with Rizvi Traverse Management, which has said it will raise financing for the transaction from major lenders. Hefner said in his proposal letter that he is not interested in any sale or merger of Playboy Enterprises, selling his shares to a third party or entering into discussions with any other financial sponsor for a similar transaction, according to the company.

07-12-2010, 12:49 PM	#2
Wizzo 2011 GFY Hall of Fame! Industry Role: Join Date: Nov 2000 Location: Back in Texas! Posts: 15,224	AFF owning Playboy, haha you go Mark Bell! __________________ Looking for Opportunity!

07-12-2010, 12:59 PM	#4
Semi-Retired-Dave Too lazy to set a custom title Join Date: Apr 2004 Location: LA Posts: 11,190	Their stocks went up today because of all this. Not bad. __________________ Support a Good Cause

07-12-2010, 01:04 PM	#5
Vendzilla Biker Gnome Industry Role: Join Date: Mar 2004 Location: cell#324 Posts: 23,200	Wow, just wow __________________ Webair died? Carbon is not the problem, it makes up 0.041% of our atmosphere , 95% of that is from Volcanos and decomposing plants and stuff. So people in the US are responsible for 13% of the carbon in the atmosphere which 95% is not from Humans, like cars and trucks and stuff and they want to spend trillions to fix it while Solar Panel plants are powered by coal plants think about that

07-12-2010, 05:21 PM	#8
DatingGold $6 PER EMAIL JOiN Industry Role: Join Date: Feb 2003 Location: California Posts: 13,185	Don't believe the hype __________________ 9 Years of SOLID payouts and conversions! ADULT DATING - $100 PPS LIVE CAMS - $214 PPS WWW.DATINGGOLD.COM ICQ: 27442303

07-12-2010, 06:32 PM	#9
CIVMatt Amateur Pimpin Industry Role: Join Date: Aug 2004 Location: Orlando, FL Posts: 13,075	Wouldn't the two companies have to merge at some point to simply stay alive? __________________ Make easy money with Webcams