Playboy Rejects $100M Offer

Playboy’s board of directors has “unanimously rejected” the $100 million offer that was announced October 21, for Playboy brand assets, by Cooper Hefner, son of Playboy Magazine founder Hugh Hefner.

PLBY Group CEO Ben Kohn explained, “After careful review and consideration of Hefner’s unsolicited proposal, our board determined that the proposal substantially undervalues the Playboy assets and is not in the best interest of PLBY Group’s stockholders. While we certainly understand and are appreciative of the interest in Playboy’s unparalleled brand, the board is confident that the company’s continuing pursuit of its Playboy-focused, asset-light model will better support long-term value for stockholders. The board will continue to evaluate all options and opportunities for Playboy.” 

PLBY Group, which owns Honey Birdette, in addition to the Playboy brand, has suffered sizable losses in recent years, as well as sales declines in many areas of its business. But licensing revenue, which comes mainly from its many Playboy brand assets, was once a major profit center. For example, in a 2021 prospectus, Playboy stated that for full year 2020, it had generated operating income from “licensing” of $44.466 million on total licensing revenue of $61.142 million. In recent years, however, that revenue has declined dramatically. For the second quarter of this year, Playboy reported “licensing revenue declined $5.0 million, or 49%, year-over-year, to $5.3 million. The decrease is primarily attributable to China and the termination of two of the company’s three largest licensing agreements in late 2023, which management has already begun to remedy by entering into multiple new licensing agreements in recent months.”

It was widely reported that Hefner was offering $100 million in cash for Playboy intellectual property as well as a 10% stake in a new company he was proposing. In an interview with the Wall Street Journal, Hefner complained Playboy management had entered “businesses that they’ve never operated before,” and that its products are “not resonating at all with consumers or customers or fans.” — NM

Above, lingerie on the shop.playboy.com website.