Hugh Hefner, the legendary founder of Playboy Enterprises, has offered to acquire all outstanding shares of his company for $5.50 per share in cash. The pajama-loving entrepreneur owns 69.5 percent of Playboy’s Class A common stock and 27.7 percent of the Class B common stock. He has offered to buy the rest at a total cost of $185 million.
The announcement boosted Playboy’s stock more than 40 percent today, closing at $5.55. On Friday, shares closed at $3.94.
The Hef, 84, founded the famous adult entertainment magazine in 1953. Centerfolds have included Marilyn Monroe, Pamela Anderson, Anna Nicole Smith and Kim Kardashian. Although the magazine’s circulation has dropped to just over 2 million, Playboy Enterprises brought in $21 million last year from licensing the brand, and another $9.9 million from the company’s television properties.
The company went public in 1971. Playboy Enterprise’s board of directors has not yet made a decision regarding Hefner’s proposal, and now investors are expecting a competing bid from the owners of Penthouse.