California’s Playboy Enterprise explores deal to return to stock market

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California’s Playboy Enterprise explores deal to return to stock market

Playboy Enterprise, the Beverly Hill, California-based owner of the fashion magazine Playboy, had been brewing off an option to re-enter into the public trading through a merger with a blank-check acquisition company, an Associated Press report published late on Friday had unveiled citing people familiar with the subject-matter.

In point of fact, a Playboy Enterprises deal with a blank-check firm, a widely-used move to make a re-entrance into the stock exchanges, called as a Special Purpose Acquisition Company (SPAC), in effect would lead to Playboy’s return into the US public market nine years after it had been taken private at a $207 million deal, in part led by the fashion magazine’s late-founder Hugh Hefner alongside private equity firm Rizvi Traverse Management.

Nonetheless, since the fashion magazine-owner went private, sales of its print version had been met with a steep decline, while the ongoing pandemic outbreak had compounded its stance as a leading lifestyle and fashion magazine further, eventually leading to a halt at its printing magazine business earlier this year after an enticing seven-decade run that had begun in the 1953s with a debut featuring Marilyn Monroe.

Playboy in advanced talks with investment banks

Apart from that, the California-based fashion magazine-owner appeared to be in an advanced-stage talk with an investment bank in pursuit of a potential SPAC buyer, while a deal in turn would proffer the ailing fashion magazine an access to a sufficient financing which it would be requiring to thrive growth initiatives, the sources said on condition of anonymity.

Nonetheless, a press agency report had also quoted one of the sources as saying that the talks might not lead to a deal, while a representative for Playboy had neither declined nor acknowledged the feasibility of the market whispers while having been asked over the subject-matter.

After the death of the Playboy founder Hefner back in the 2017s at the age of 91, his family sold off a 35 per cent stake of Playboy Enterprises to Rizvi Traverse for an upsum of $35 million in 2018, data from Pitchbook had revealed.