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Summary:

Playboy (NYSE: PLA) has been willing to listen to sale offers since February, but with an asking price of $300 million, no one’s talking, NY…

imagePlayboy (NYSE: PLA) has been willing to listen to sale offers since February, but with an asking price of $300 million, no one’s talking, NY Post’s Keith Kelly reports, citing unidentified sources. The media company has made overtures to PE firms like Apollo Capital Partners and Providence Equity Partners, but they haven’t responded.

While Playboy is officially maintaining its “we’re listening, but not looking” stance, James Griffiths, a former president of the company’s entertainment group, is said to be managing the sales process.

The resignation of Christie Hefner as chairman and CEO in December, seemed to help pave the way for the consideration of a sale. But despite its wide reach through magazines and cable TV, along with a stepped up online effort in January, the company’s value has continued to shrink. As Kelly notes, Playboy’s market cap is now around $100 million and in this dismal economy, the amount it would take to convince Hugh Hefner, who founded the company in 1953 and remains chief creative officer, has been deemed too large by potential takers.

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  1. The popularity of Playboy doesn't have much impact to be worthy of the $300 million offer. Given the fact that we are experiencing global financial crisis.

  2. Playboy has had more impact on society than any other magazine in print! The Bunny Logo alone should generate $100 million!! Its a world wide icon. Recommendation: Buy PLA now before this train leaves the station! When the economy turns and costs are cut, this company will have tremendous earnings power.

  3. TradingSystems4forex.com Saturday, May 23, 2009

    This is the sad thing, in a tough economy some iconic assets reach depressed values. This is why cash is king. Whoever can grab that property is almost certain to be doing well in the long run.

  4. Playboy missed the boat a decade ago when the internet became King. No longer is this Company of any value. In the late 1990's, Playboy released a multi level media blitz regarding their potential growth via the internet , casinos etc…None of their potential undertakings came to be but, the reality of this media stunt raised the stock value from $13.00 to $36.00 and if you remember-that is when Hugh Hefner sold his shares for $70 Million. I ask you, if the man who created Playboy lost his confidence back then, then why would anyone buy Playboy today.

  5. Umm, Steve, you're wrong. Hugh Hefner still owns about 70% of the outstanding shares of PLA. He was merely taking some profits at the highest price the company had ever been at. Do your homework before you make silly comments. Hugh is a businessman, and it was a smart move to sell some at the time he did. Bulls make money, bears make money, HOGS get slaughtered. BUY PLA!!!!

  6. antiCramer, what's your cost basis for the boatload of PLA you own? Talk it up as much as you like to lessen your loss, but them bitches got fleas. Rabid dogs need to be shot and do not renew your subscription. Are you Will Bales?

  7. Ha! My average cost is $1.90. I never said I had a "boatload" as you put it. I own1k, AND WILL buy more ON A PULLBACK. I'm NOT Will. I love my subscription! So does my old lady! Again, to all you nay-sayers, do what you like, I like to make $$. Buy PLA! Good luck!

  8. This is from MarketWatch on May 27th. It sounds an awful lot like my first post on May 22. You tell me if I'm wrong!

    "Playboy has come to stand for something as an iconic American brand.
    That's why it should remain in the hands of an American company. Playboy is as American as cheesecake.
    Most businesses are founded with the idea of making money, not for having social ideals."

    Everyone except Daniel, Steve, and Samantha should Buy PLA. Good luck!

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