Hugh Hefner struggling hard to retain its ‘Playboy’ empire
Hugh Hefner, the owner and finder of Playboy magazine as well as the editor in chief and chief creative officer, is fighting hard to retain his business empire which has given him name, money and fame for such a long time. His ownership is at a threat from the rival ‘Penthouse’ magazine owner who declared that he was ready to launch a higher bid to Hefner’s offer of a $185m takeover deal.
The owners of rival Penthouse magazine said they would launch a higher bid, setting the scene for a battle between the two titans of soft porn.
In response, 83-year-old Hefner, vowed not to sell his controlling stake to anyone. Instead, he planned to offer to buy the 30.5 per cent of the company he does not own. A Michigan-based private-equity firm called Rizvi Traverse Management has agreed to finance Hefner’s bid.
Hefner launched Playboy in 1953 and last 2 decades have seen a downfall in the magazine’s sales. It has also scaling back publication from 12 issues to 10 per year. Overall, the company has lost more than $200m in two years, and its revenues fell by 17 per cent last year.
The Playboy board chaired by David Chemerow intends to form an independent committee to examine Hefner’s bid when it is formally tabled.
