Monday morning, the publisher of iconic adult magazine Playboy (PLA) announced that it will take the company private, thanks to a "sweetened offer" from the magazine's founder Hugh Hefner. The offer of $6.15 per share represents an 18% premium from the stock's Friday close. The total offer values the company at $207 million. Back in July, Hefner's Icon Acquisition Holdings LP offered $5.50 per share.

Playboy has had other offers, including an offer of $210 million from rival Penthouse magazine. That said, Hefner is Playboy's largest shareholder with roughly 70% of the company's voting shares and 28% of the company's nonvoting stock. Hefner noted that the "agreement will give us the resources and the flexibility to return Playboy to its unique position and to further expand our business around the world."

Continue reading Hefner Is Taking Playboy Private

Hefner Is Taking Playboy Private originally appeared on BloggingStocks on Mon, 10 Jan 2011 11:30:00 EST. Please see our terms for use of feeds.

Continue reading Playboy's Q3 Earnings: Should You Buy the Numbers?

Playboy's Q3 Earnings: Should You Buy the Numbers? originally appeared on BloggingStocks on Tue, 09 Nov 2010 16:00:00 EST. Please see our terms for use of feeds.

A report has surfaced that Playboy's (PLA) founder Hugh Hefner has made an offer to purchase the remaining shares of the company -- taking it private.

Supposedly Hefner will join forces with Rizvi Traverse Management in order to buy the shares that he doesn't already own for $5.50 apiece. Would this be a solid investment for Hefner or will the move result in a last-gasp effort to try and make the magazine relevant in some way?

Continue reading Hefner Taking Playboy Private?

Hefner Taking Playboy Private? originally appeared on BloggingStocks on Mon, 12 Jul 2010 10:40:00 EST. Please see our terms for use of feeds.

TMZ reports that a Playboy (PLA) shareholder has filed a lawsuit against the company, alleging that majority shareholder and chief creative officer Hugh Hefner has intentionally sabotaged multiple deal possibilities in an effort to hold onto his own lifestyle.

"If you were Hugh Hefner, 81, would you give up the parade of busty blonds, the fancy mansion and the reality TV show for a payout?" the lawsuit asks. "Hefner has continued to live the good life and make sure everyone knows it. Hefner remains in the limelight, showing up at media events and at the Playboy mansion ... with his girlfriends by his side."

Continue reading Shareholder Slams Playboy with Lawsuit over Hugh Hefner

Shareholder Slams Playboy with Lawsuit over Hugh Hefner originally appeared on BloggingStocks on Tue, 09 Feb 2010 14:00:00 EST. Please see our terms for use of feeds.

Playboy (PLA) tends to be associated with the magazine and sex. Not the hardcore, nasty kind, of course -- Playboy has always been more than a tad distinguished, staying above board while the adult entertainment industry has chosen to compete in ways that my editor would delete if I even attempted.

With Iconix said to be interested in acquiring Playboy, it needs to think about where it can win with the ailing brand. The smart move may be to ditch the magazine and move away from sex -- it can't compete in either of these markets. Then, it needs to figure out how to make the brand relevant to everyone not in the Boomer generation ... or treat Playboy as an investment with a clock on it.

Continue reading Iconix could make Playboy work: Kill the mag, take the sex out of the brand

Iconix could make Playboy work: Kill the mag, take the sex out of the brand originally appeared on BloggingStocks on Sun, 22 Nov 2009 16:40:00 EST. Please see our terms for use of feeds.

Playboy is such a mess that even the hint that a company is interested in it triggers a reaction. Oak Hill Capital Partners, a private equity firm, announced Wednesday that it has no interest in buying ailing adult media company Playboy (PLA), despite previous media reports indicating the contrary. Of course, this sent Playboy's shares down 3.7%. Oak Hill didn't just say "no way" to the present but made it clear for the future as well.

This follows a statement by Golden Gate Capital that it wouldn't be involved in a Playboy acquisition, again, despite suggestions in the media that it might make a move for the bunny. The latest possible buyer is Iconix Brand Group, which is generally hungry for brand acquisitions. Playboy is keeping its mouth shut on the matter.

Continue reading Bunny beaten: No interest in Playboy

Bunny beaten: No interest in Playboy originally appeared on BloggingStocks on Thu, 19 Nov 2009 14:10:00 EST. Please see our terms for use of feeds.

It's wabbit season!

There's only good news for Playboy (PLA) when someone expresses an interest in buying it. Shares of the ailing men's lifestyle company shot higher on Thursday when word got out that Iconix is interested in acquiring it. Iconix owns and licenses brands to manufacturers and counts Candie's and London Fog among its holdings. A deal isn't a sure thing, but Playboy now has something it hasn't in a while: hope.

Iconix has been looking to acquire more brands. And Playboy has been looking for a knight in shining armor (and with a hefty war chest in tow) since at least June, when Scott Flanders took the helm. But it looked like acquisition bait well before then, thanks to a rough financial situation.

Continue reading Iconix sets its sights on Playboy

Iconix sets its sights on Playboy originally appeared on BloggingStocks on Fri, 13 Nov 2009 09:45:00 EST. Please see our terms for use of feeds.

On a reported basis, Playboy said it lost $0.41 per share. If you strip out charges, you get a loss of $0.15 per share. This number was a few cents better than the expectations of analysts according to this source. Be that as it may, they certainly don't meet my expectations. The adjusted loss is essentially the same as last year's number. I suppose we have to give the interim CEO Jerome Kern a chance. As you'll recall, Christie Hefner finally gave up her throne earlier in the year (thankfully).

Continue reading Playboy's Q1 needs to be airbrushed

Playboy's Q1 needs to be airbrushed originally appeared on BloggingStocks on Mon, 11 May 2009 15:10:00 EST. Please see our terms for use of feeds.

Continue reading Playboy says it would consider a sale

Playboy says it would consider a sale originally appeared on BloggingStocks on Wed, 18 Feb 2009 16:20:00 EST. Please see our terms for use of feeds.

Christie Hefner's reign of terror comes to an end originally appeared on BloggingStocks on Mon, 08 Dec 2008 14:12:00 EST. Please see our terms for use of feeds.

This post is part of a feature on companies and products that our bloggers think are in need of a makeover. See all 26.

They had to twist my arm to write about Playboy Enterprises Inc. (NYSE: PLA). At least that's the story I am telling my wife and I am sticking to it.

The problem Playboy faces -- as do other purveyors of adult entertainment -- is a simple: why buy a cow when you can get the milk for free. That's a crude and probably sexist metaphor, but an accurate one. Not only is the amount of porn on the internet mind-blowing, but increasingly it's free and can be accessed anonymously. For Playboy and its competitors, the problem is only going to get worse because the popularity of these sites appears to be soaring.

Wall Street already has little faith that the Chicago-based company can redeem itself. Shares in the company built by Hugh Hefner have dropped more than 82% this year. The company has been a mess for years. Net income in the second quarter was a puny $2.1 million, or 6 cents per share. Revenue fell 14% to $73.4 million as higher licensing revenue did not offset the declines in its media business.

Particularly worrisome was the loss in the publishing unit of $1.9 million following declines in circulation and advertising at the domestic edition of Playboy magazine. Advertising pages dropped a whopping 10 percent in the third quarter.

Continue reading Makeover needed: Playboy

Makeover needed: Playboy originally appeared on BloggingStocks on Fri, 24 Oct 2008 17:10:00 EST. Please see our terms for use of feeds.

It's being reported that Playboy's (NYSE: PLA) Hugh Hefner's relationship with Holly Madison is over. Madison, as you probably know, was Hefner's head girlfriend, but he has two others as well: Kendra Wilkinson and Bridget Marquadt. The four of them star in a reality show called The Girls Next Door, which runs on the E! channel. It's a pretty fun show, although it does make me maddeningly envious of Hef's lifestyle. That aside, it seems to be a decent brand ambassador for the Playboy image. Unfortunately, the popularity of the show hasn't been enough to offset losses at the media company. Playboy's stock currently sits below $3 a share. It is the exact opposite of one of Hef's playmates: downright depressingly ugly.

Well, I can't really comment as to how the Hefner/Madison affair will turn out. Will she go back with him? Is this just a publicity stunt? I simply don't know. However, I would imagine that, with Playboy's stock in the dumps, a breakup might be an event that could be exploited to help out the company. Let's face it: the whole three-girlfriend thing is pretty much an orchestrated machine anyway. So, if Madison truly does feel like she's ready to move on with her career, I think Hef should clean house and get rid of the other two girls as well. Then, he could go on a search for three new girls next door (or maybe he should search for more, why stop at just three?). It could be an integrated media campaign spanning the magazine, the website, and a new reality show.

Continue reading Will Hefner's split with one of the girls help Playboy's stock?

Will Hefner's split with one of the girls help Playboy's stock? originally appeared on BloggingStocks on Wed, 08 Oct 2008 11:10:00 EST. Please see our terms for use of feeds.

Playboy Enterprises, Inc. (NYSE: PLA) may not be doing so well, but it's still one of my favorite companies -- I'm a guy, so this makes sense. The company reported Q4 and full-year earnings today -- losses have widened, and I'm sure not a few investors out there are questioning the value of the brand.

Total net revenues saw a slight decline for the quarter, coming in at roughly $86 million. The company lost 3 cents per share on these revenues; in the previous year's quarter, Playboy actually booked a much more pulchritudinous 11 cents per share of positive net income. For the year, total net revenues didn't jump like a bunny -- $340 million versus $331 million. Net income, however, was much better, doubling to 15 cents per share. The company's year-end results benefited from a decline in interest expense, income tax obligations, and other costs. Sales of artwork were also cited by CEO Christie Hefner in the release.

The licensing operations are performing, but domestic TV and publishing are very weak. In fact, it is the publishing segment that really needs attention. It's been needing attention for a long time now -- for the year, subscription sales were down, newsstand sales were down, and advertising revenues rose by the smallest bit.

Long-term, I still have hope for Hugh Hefner's Playboy. It is an American icon, and its logo continues to propel licensing; plus, the company does have a nice presence in Vegas at the Palms Casino Resort. As Jonathan Berr reported back in November, you may want to remember that sex does indeed sell, and one has to assume that Playboy will be supplying that demand for years to come.

Playboy needs to get sexy again originally appeared on BloggingStocks on Wed, 13 Feb 2008 16:48:00 EST. Please see our terms for use of feeds.

Continue reading Playboy posts strong earnings, attracts hedge fund interest

Playboy posts strong earnings, attracts hedge fund interest originally appeared on BloggingStocks on Wed, 07 Nov 2007 09:43:00 EST. Please see our terms for use of feeds.