Hugh Hefner’s Playboy Empire up for Sale?

May 22, 2009

(ChattahBox)—Hugh Hefner’s magazine based empire of scantily dressed women wearing pink bunny ears may be on the market. The 83-years-old perpetual playboy has fallen on hard times, as the showpiece of his business interests, the Playboy Magazine, is losing money like a sieve.

Reports are surfacing that the enterprise, established in 1953, is being shopped around for a cool $300 million, although the market capitalization of the company is estimated at $100 million.

According to the NY Post, Capital Partners and Providence Equity Partners were approached with a purchase deal, but didn’t bite. Playboy is seeking a premium price it’s said, to ensure Huge Hefner has enough cash to fund his extravagant lifestyle.

Some observers have commented in the past that Hef would take the Playboy enterprise to his grave, and never sell it. And with his control of 70 percent of the voting stock, it’s not going to be sold without his blessing. Wells Capital is the next largest shareholder, holding 10 percent of stock.

The company is losing money, like many magazines and newspapers during these hard economic times. The Internet is also cutting into some of the magazine’s profits, where naked women are a dime a dozen. The company just reported a huge loss of $13.7 million, compared to a loss of $4.2 million the same time last year.

This past year has not been kind to Hef. He lost the two most important women of his life. His daughter Christie Hefner, left her position as CEO of the company and her seat on the board in January. The love of Hef’s life, twenty-nine years old Holly Madison, left Hef in October, when the couple discovered he could no longer father children.

A Playboy spokeswoman indicated it has not received a formal purchase offer, but would consider any proposals.

Source

Photo by Alan Light


Comments

One Response to “Hugh Hefner’s Playboy Empire up for Sale?”

  1. Twitted by brokdikdog on May 23rd, 2009 3:14 am

    […] This post was Twitted by brokdikdog – Real-url.org […]

Got something to say? **Please Note** - Comments may be edited for clarity or obscenity, and all comments are published at the discretion of ChattahBox.com - Comments are the opinions of the individuals leaving them, and not of ChattahBox.com or its partners. - Please do not spam or submit comments that use copyright materials, hearsay or are based on reports where the supposed fact or quote is not a matter of public knowledge are also not permitted.