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Playboy shies away from public life

playboy-marylin125x100.jpgPlayboy Enterprises Inc. has come full circle. The adult entertainment media company that started out private and attempted to expand as a public entity over the last 40 years is going back to its private roots. Icon Acquisition Holdings LP announced that it will take Playboy private with equity commitments from an affiliate of private equity firm Rizvi Traverse Management LLC for $6.15 a share, or about $180 million.

The Chicago-based company had placed itself on the auction block in February 2009 after many quarters in the red, despite maneuvers to restructure that included layoffs and closing core offices. (See The Deal Pipeline story -- subscription required.) Rizvi's commitment for Playboy was enough to pry it away from other reported bidders over the last two years, which have included Richard Branson, Iconix Bran Group Inc. and FriendFinder Networks Inc. (See The Deal Pipeline story -- subscription required.)

So, what does Icon Acquisition, Rizvi and Playboy founder Hugh Hufner get in the media company? A brand that still has some value that can be transformed without the scrutiny of shareholders.

"Our strategy is to transform Playboy into a brand management company," Playboy CEO Scott Flanders said. "This transaction will advance our efforts by strengthening our balance sheet and streamlining our operations, while creating opportunities to participate in new ventures. I am excited about the future, and I look forward to working with our new partners as we guide Playboy into the next era." - Gerald Magpily

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