Hugh Hefner going private with Playboy

August 2nd, 2010 - 8:10 pm ICT by Aishwarya Bhatt  

hughhefner New York, Aug 2 (THAINDIAN NEWS) Hugh Hefner, who is the brain behind Playboy Enterprises is hoping to gain 100 percent control of the company, which he had placed on the stock exchange years ago. Hefner has finally proposed to pay to Playboy shareholders in order to gain control of the company with the help of Rizvi Traverse Management, which is a financial firm.

The offer could be highly flattering to shareholders considering the fact that it’s over 40 percent higher than the stock’s last closing price on Friday. This could help the company raise enough capital to expand the company’s growth.

Andrew Buchholtz, who is the Managing Director of A. Buchholtz & Co said that the Playboy brand was not taking advantage of its public listing on the stock exchange and could perform better than it is now with its global appeal. He said that, “It’s not like Playboy’s been using the public markets to raise capital. The Playboy brand is still a tremendous brand internationally. You can exploit that much further than they are today.”

Speculation about the privatization of Playboy first came in the news towards the end of 2008, which helped boost its shares prices a little from $2.20

The company could benefit from sourcing of more capital to undertake its expansion projects. It will also ensure that Hefner’s family will inherit the company in future.

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