While smut has battled smut for decades, two of the biggest may now become one.
Penthouse, which is owned by FriendFinder Networks, made a $210 million bid to buy Playboy Enterprises, an announcement that comes just days after Playboy founder Hugh Hefner said he’d buy all of the outstanding shares in the company and make it private.
"We are very excited about the prospect for the combination of Playboy Enterprises and FriendFinder Networks," FriendFinder president and chief executive officer Marc Bell said in an article from AFP. "We look forward to Mr. Hefner and other key members of management being an integral part of the combined companies. We envision that following the completion of the proposed transaction, Mr Hefner would retain editorial control of Playboy Magazine and would be entitled to reside in the Playboy Mansion,” which has an apparent value of $40 million. Bell also said in an interview with Reuters that Hef “built a cultural icon and he is a cultural icon. He is trying to protect his legacy. We would love nothing more than to help him achieve his goal, protect his legacy and really become a partner."
Hefner’s offer totals $123 million ($5.50 apiece in cash for the Class A and Class B shares), significantly lower than the Penthouse owners’ proposal. Hefner recently said in an MSNBC article, “I believe my proposal, which was delivered to the Playboy Board on July 8, 2010, is in the best interest of the company and its minority shareholders and I look forward to continuing discussions with the Board.”
The deal would include Playboy magazine as well as merchandise, television and video content.
A meeting with FriendFinder as well as Hefner and Playboy is expected to be held in the next few days.
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