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 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.