Hugh Taking Playboy Private at $6.15

Posted by Ian Cooper - Monday, January 10th, 2011

From Bloomberg.com:

"Playboy Enterprises Inc. agreed to be taken private for $207 million by founder Hugh M. Hefner, who increased his bid to gain full control of the 58-year-old magazine publisher amid slumping circulation and losses.

Hefner, 84, is offering to buy the Class A stock and Class B shares he doesn’t already own for $6.15 per share, representing an 18 percent premium over the Class B closing price of $5.20 a share on Jan. 7, the company said in a statement today. Hefner said in July he would pay $5.50 a share in cash for the stock.

The decision by a Playboy board committee to support Hefner ends a contest for control with FriendFinder Networks Inc., owner of Penthouse adult magazine, which in July said it would offer $210 million for Chicago-based Playboy. The board determined Hefner’s bid is in the company’s best interests, Sol Rosenthal, a board member, said in a statement."

Read more here.

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