Hugh Hefner is taking Playboy Enterprises private again after a deal valuing the company at $207 million.
According to Business Week, Hefner increased his per-share bid by 65 cents over the amount he offered back in July:
Hefner, 84, is offering to buy the Class A stock and Class B shares he doesn’t already own for $6.15 per share, representing an 18 percent premium over the Class B closing price of $5.20 a share on Jan. 7, the company said in a statement today. Hefner said in July he would pay $5.50 a share in cash for the stock.
FriendFinder Networks, the company that owns Penthouse, also made an attempt in July to purchase the company for $210 million. It was determined by Playboy’s board that giving control of the company to Hefner was in Playboy Enterprises’ best interests. In a statement, Hefner opined that the transition to being a privately held company was the right direction for the company:
“With the completion of this transaction, Playboy will come full circle, returning to its roots as a private company. The brand resonates today as clearly as at any time in its 57-year history.”
In the past decade, Playboy has seen massive drops in circulation due to steep competition from web-based adult entertainment outfits.