Hugh Hefner reached a deal to acquire the shares of Playboy Enterprises he doesn't own. A $207-M transaction made the enterprise private again.
Fifty-eight years ago, Hugh Hefner launched the famous adult magazine. Partially clad photos of Marilyn Monroe in the centerfold of the first issue made it stand out as distinctive.
"Playmates" over the decades included Ursula Andress, Kim Basinger, Nancy Sinatra, LaToya Jackson, Jayne Mansfield, Gabrielle Reece, Suzanne Somers, Farrah Fawcett, Carmen Electra and Pamela Anderson.
Known to fans as Â“Hef,Â” Hugh Hefner now has the company back as a private property. The transaction is valued at $6.15 a share. Some shareholders were disgruntled, considering future growth possibilities for the enterprise into 2012.
However, the magazine also faces challenges in the modern business world. While their recognizable bunny logo adorns a variety of goods and services, the magazine could be at risk. Many online outlets offer hot photos for free. Fans argue no other resource features more famous and beautiful women than Playboy.
Forbes reports CEO Scott Flanders says the current strategy is to Â“transform Playboy into a brand management company.Â”
Branding is one of the sexiest words in business today, in accordance with the distinctive Playboy bunny image. Born in 1953 on the kitchen table of Hef's South Chicago apartment, the adult magazine quickly grew into a profitable enterprise with global appeal.
Despite revenue declines in recent years, due to a crash in magazine advertising and the availability of adult material online, Playboy remains a business icon worth about $207.3-M.
The Wall Street Journal reports Hef made a statement, Â“With the completion of this transaction, Playboy will come full circle, returning to its roots as a private company. I believe this agreement will give us the resources and flexibility to return Playboy to its unique position and to further expand our business around the world."
Considering the history of Hef's business expertise, anything is possible.
Photo Source: Wikimedia Commons