Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Hugh Hefner taking Playboy private

chart_ws_stock_playboyenterprisesinc.top.pngShares of Playboy surged in July after Hugh Hefner first proposed taking the company private. By Aaron Smith, staff writer


NEW YORK (CNNMoney) -- Playboy founder Hugh Hefner signed an agreement to take his publicly-traded company private, the company said Monday.

Hefner, who already owns a substantial amount of the company's shares, has entered an agreement with Icon Acquisition Holdings to pay $6.15 per share for the portion of Playboy Enterprises that he does not own.

This would be an 18% premium from Playboy's (PLA) closing price of $5.20 per share on Friday. At the start of trading on Monday, shares surged 17%.

"With the completion of this transaction, Playboy will come full circle, returning to its roots as a private company," said Hefner, who created the pornographic magazine with its iconic bunny logo 57 years ago.

Hefner, through his trusts, owns 69.5% of the class A shares and 27.7% of the class B shares. He expects to close the deal by Jan. 21.

This ends an ongoing bidding war with another porn icon, Penthouse. FriendFinder Networks, the owner of Penthouse magazine, offered to buy Playboy for $210 million in July, 2010. At the time, that translated to $6.24 per share.

That offer was in response to Hefner's original plan to purchase the outstanding shares for $5.50 each, which valued Playboy at $185 million.

Playboy has been struggling with profitability in recent years, given the proliferation of free, online pornography. To top of page

Index Last Change % Change
Dow 22,349.59 -9.64 -0.04%
Nasdaq 6,426.92 4.23 0.07%
S&P 500 2,502.22 1.62 0.06%
Treasuries 2.25 -0.02 -0.70%
Data as of 9:19am ET
Company Price Change % Change
Comcast Corp 38.10 0.63 1.68%
Mondelez Internation... 40.05 -0.14 -0.35%
Pfizer Inc 35.96 -0.01 -0.03%
Regions Financial Co... 14.42 -0.01 -0.07%
Mattel Inc 14.52 -0.48 -3.20%
Data as of Sep 22
Sponsors

Sections

The shutdown, which raised protests from navigator groups, will occur from midnight to noon on on all but one Sunday. More

Uber's new CEO issued an apology to Londoners on Monday just days after city officials said they would not renew the company's license. More

When you're making big career decisions, you turn to your mentors and your trusted peers. But how do you find these mentors and trusted peers in the first place? More