Playboy Enterprises said Monday that it has accepted a modified offer
from Icon Acqusition Holdings, a vehicle headed by its founder Hugh
Hefner, to purchase the remaining stock he doesn't already own for $6.15
per share, a move that will effectively take the adult content icon
private.
Hefner, who founded Playboy in 1953, initially offered to purchase the remaining stock in Playboy for $5.50 per share in July. Shortly after, rival adult content company - FriendFinder Networks, publisher of Penthouse magazine - lobbed in a counter offer at $6.25 per share.
But since Hefner had stated that he had no intention to sell his
existing stake in the company - about 70% of its outstanding stock -
that counter proposal was considered to have little chance of
succeeding.
Playboy formed a special committee of independent
directors in July to evaluate Hefner's offer. On Monday, after Hefner
tweaked his offer to $6.15 per share, the special committee deemed it
sufficient.
