Hugh Hefner has put in a bid to the board of directors of Playboy Enterprises to buy all of the outstanding shares of Class A and Class B common stock of PEI not currently owned by Hefner for $5.50 per share in cash. Hefner owns 69.5% of PEI’s Class A common stock and 27.7% of PEI’s Class B common stock.
According to the proposal letter, Hefner has had discussions with Rizvi Traverse Management, with whom Hefner expresses an intention to partner in connection with the transaction. The bid values Playboy at $185 million.
Friend Finder Network, owner of Penthouse, said it was preparing to make a counteroffer. Friend Finder Chief Executive Marc Bell said Hefner’s offer “dramatically” undervalues Playboy.
Location: USA, Chicago, IL
Related article – Is Playboy about to start making acquisitions? Posted on May 4, 2010
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