The group that owns the fading Playboy brand on Thursday rejected a $100 million buyout offer from Cooper Hefner, the son of the magazine’s late founder.
CEO Ben Cohn said in a statement, “After careful review and consideration of Hefner’s unsolicited proposal, our board determined that the proposal significantly undervalues the Playboy assets and is not in the best interests of PLBY Group shareholders. ”
Cohn said, “While we certainly understand and appreciate the interest in Playboy’s unique brand, the board is confident that continuing the company’s Playboy-focused, asset-light model will create long-term value for shareholders.” will be better supported.”
The board’s decision was unanimous, the company said.
Playboy Group fell as much as 11% on news of the rejection, but recovered some losses to close 3% lower at 81 cents a share.
Cohn said the board would “continue to evaluate all options and opportunities for Playboy”, leaving the door open to a revised deal.
Hefner, 33, revealed on Monday that he and his investment firm Hefner Capital had made a bid To reclaim the company made famous by Hugh Hefner more than seven decades ago.
Hefner said, “The decision to acquire the Playboy assets stems from a personal connection and the unique ability to reinvigorate a worldwide popular brand.” told the hollywood reporter“This effort is about preserving the legacy that has been built over decades, ensuring that the creativity, value and cultural relevance that defines Playboy is not lost.”
Hefner, whose investor group includes a hedge fund and one of Playboy’s former licensing partners, told The Journal that he will take on the role of CEO.
“It’s a great American company and a great American brand, other than my personal connection to it,” Hefner told The Wall Street Journal. But it has been “potentially managed to the point of non-existence.”
Playboy went public in 2021 after combining with a special acquisition company and its stock trades at $50, but it has been steadily losing money – and relevance – over the past few years.
The company ended publication of its iconic magazine – which published its first issue in 1953 – in 2020, citing pandemic-era supply chain disruptions as the reason.
But Playboy has long struggled to find its footing in a rapidly evolving media landscape.
It first lost some of its key demographics in the 1980s due to magazines like Penthouse and Hustler, which published more explicit photos.
Playboy magazine became completely antiquated with the rise of the Internet, making pornography easily available.
In 2015, Playboy announces it will stop publishing photos of naked women In an attempt to rebrand and carve out a new market for itself, the move was largely unsuccessful.
Hugh Hefner, who wore the robe, died in 2017 at the age of 91. He survived four children, including Cooper, all of whom sold their shares in the company.
Cooper Hefner has lamented the company’s decline and blamed its slide toward obsolescence on mismanagement.
“This is Playboy entering businesses he’s never operated in before,” he told the Journal.
He said the products were “not being sold to consumers or customers or fans at all.”
“And the decline of the business and the relevance of the brand – which is hardly talked about today – is a direct reflection of that.”
