Penthouse Publisher Says He’ll Bid on Playboy Thursday By Mike Taylor on Jul 14, 2010 03:17 PM
from http://www.mediabistro.com/
Marc Bell, CEO of FriendFinder Networks and publisher of purportedly erotic magazine Penthouse, told XBIZ Newswire (yes, the porn industry has its own wire service) today that he plans on making his bid to buy Playboy public on Thursday at 12:30 p.m.
Bell’s interest in the magazine follows an offer by Playboy founder Hugh Hefner to take Playboy Enterprises private by buying the shares of Playboy he doesn’t own already for $5.50 apiece for a total valuation of $185 million.
In response to Bell, Hefner wrote on Twitter: "Penthouse is just looking for publicity. They’re not in the picture."
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PLAYBOY ENTERPRISES, INC. ANNOUNCES RECEIPT OF "GOING PRIVATE" PROPOSAL AT $5.50 PER SHARE
CHICAGO (July 12, 2010) – Playboy Enterprises, Inc. ("PEI") (NYSE: PLA, PLAA) today announced that its board of directors has received a proposal from Hugh M. Hefner ("Hefner") to acquire 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 LLC ("Rizvi Traverse"), with whom Hefner expresses an intention to partner in connection with the transaction. The proposal letter also states that Rizvi Traverse informed Hefner that it had contacted major lenders regarding potential financing and that Rizvi Traverse is highly confident ample financial resources will be available to complete the transaction. The proposal letter states that Hefner and Rizvi Traverse contemplate that the definitive agreements would not contain a financing contingency. In the proposal letter, Hefner advises the board of directors that out of Hefner’s concerns for, amongst other matters, the PEI brand, the editorial direction of the magazine and PEI’s legacy, Hefner is not interested in any sale or merger of PEI, selling Hefner’s shares to any third party or entering into discussions with any other financial sponsor for a transaction of the nature proposed in the letter.
The board of directors cautions PEI’s shareholders and others considering trading in its securities that it has only received the proposal and that no decisions have been made by the board of directors with respect to PEI’s response to the proposal. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated. If the proposal moves forward, PEI’s board of directors will form a special committee of independent directors to consider the proposal. The committee would retain independent financial advisors and legal counsel to assist it in its work.