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'NY Post': Playboy for Sale

Company will not confirm report that Bunny is on market for $300 M

'NY Post': Playboy for Sale

CHICAGO — The New York Post on Friday reported that Playboy Entertainment Group is on the market for $300 million, but company representatives would not publicly confirm that report.

In February, AVN.com reported that Playboy Enterprises could be for sale following massive Q4 losses of $145.7 million.

A source has confirmed to AVN.com that there are three groups currently putting together potential offers.

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Company representatives have continued to deny the Bunny empire is being shopped around and did so again on Friday, following the New York Post story that claimed Playboy was seeking $300 million, which is much more than it is worth in market capitalization.

The Post also said investment groups such as Apollo Capital Partners and Providence Equity Partners had been approached. The story said that former Playboy Entertainment Group president is involved in brokering sales talks.

However, according to ChicagoBusiness, a Playboy spokesperson said the company "is not being shopped.”

Also, the Post suggested the sale may come from the camp of founder Hugh Hefner, though the spokesperson said, "We have not received a proposal for purchase, nor has Mr. Hefner indicated that he will listen to proposals regarding a sale. However, as a public company, we will listen to proposals that could create value for all of our shareholders."

Back in February, AVN.com reported that interim chairman and CEO Jerome Kern said that when it came to offers, Playboy was "willing to listen." Company spokeswoman Elizabeth Austin told the New York Times, "We've always been open to discussion" though added at the time that the magazine was not for sale.

As noted by 247WallSt, Playboy's liquid assets continue to shrink. While Playboy shares made a 5 percent gain on Friday, the market cap is $89 million based on a price of $2.68 per share. The analysis site called the $300 million figure "absurd" and has been following the plunging value of the stock for more than a year, determining that various cut-cutting measures and department consolidations were not enough to stem the tide of losses. In a cutting blow, the site said, "It is probably far more fun to attend one of the Playboy parties than it is to own their stock."

Playboy representatives were not available Friday for additional comments.

For more about Playboy, see AVN.com's news archive .






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