Hugh Hefner Going Private With Playboy Enterprises
By: Mary Smith
Published: Aug 2, 2021
Hugh Hefner is going private with Playboy Enterprises in a bid to acquire all stock.
Hugh Hefner going private with Playboy company. Founder and chief creative officer of Playboy Enterprises, Hugh Hefner, is taking his company private. Hugh Hefner plans to make a bid to acquire the company stock.
He is looking forward to making a bid to acquire all the stock of the company he doesn't already own. The 84-year-old can do this because of Playboy's dual-class stock structure. This stock structure allows him to have full control of the company, even though he owns only 33.7 percent of its class B shares, where most of the economic value resides.
Playboy is already attracting rival suitors, including an offer from Penthouse, worth 13 percent more than Hefner's bid. "If I sold it, my life would be over," Hugh Hefner said in a statement. Hefner started the empire in 1953. In recent years Playboy has struggled in the face of competition from the Internet.
Hefner wrote a letter to Playboy's board, in which he is not a member. In the letter, he disclosed his bid of $185 million. However, he also made something else plain: "I am not interested in any sale or merger of the company, selling my shares to any third party or entering into discussions with any other financial sponsor for a transaction of the nature proposed in this letter."