It looks as if sex isn't selling much these days. Playboy Enterprises Inc., which is looking for a new CEO, dealt another blow to the publishing industry as the famed magazine publisher
reported mounting losses. It posted a net loss of $145.7 million for the fourth quarter as consumers become increasingly hesitant to spend.
Chicago-based Playboy said in a conference call it would be
open to discussions about an outright sale of the company, or changes in the strategic direction of the flagship Playboy Magazine. Playboy recently said it will consolidate its publishing and online operations and is making job cuts.
As the AP notes, $146.4 million in losses came from
goodwill impairment and other intangible company assets -- the charges pertained mostly to television acquisitions it made in the late 1990s.
For the publishing group, revenues were down 11% to $22 million year over year, primarily due to lower advertising and circulation revenues at Playboy magazine.
Along with a new strategy, Playboy needs a new CEO. Last month, Hugh Hefner's daughter
Christie Hefner stepped down as chief after 20 years at the helm, handing a temporary role to long-time director Jerome Kern. Christie got a
$2 million severance when she left and signed non-compete agreements.
In other news, the lack of an underwriter stalled an IPO at Penthouse magazine owner FriendFinder Networks Inc. Bringing a bit of humor to situation were Larry Flynt, publisher of Hustler magazine, and Joe Francis, producer of "Girls Gone Wild" videos. They actually suggested that the porn industry get
$5 billion in TARP money. I don't think Treasury Secretary Timothy Geithner has officially responded to the request. ... -
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