Entertainment

Playboy agrees to Hefner buyout offer

Monday, January 10, 2011
Hugh Hefner, Playboy

The publisher of Playboy magazine has agreed to a sweetened offer by founder Hugh Hefner to take the company private.

The price of $6.15 a share is an 18 percent premium over Friday's closing price and values the company at about $207 million. The bid tops Hefner's offer of $5.50 per share in July.

A group led by Penthouse magazine has also made an offer for Playboy Enterprises Inc. valued at $210 million

But Hefner is Playboy's largest shareholder with about 70 percent of the company's voting shares and 28 percent of the nonvoting stock.

The company's namesake magazine has struggled with competition from the Web, losing readers and advertisers.

(Copyright ©2014 by The Associated Press. All Rights Reserved.)

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playboy, hugh hefner, entertainment
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