- Hefner's son was planning to buy his father's Playboy empire
- In 1999, the company had a market value of USD 671 million
- Playboy rejects $100 million buyout offer from Hefner's son
- Shortly afterward, PLBY Group's shares fell by more than 5%
Hefner's son was planning to buy his father's Playboy empire
Like father, it turns out, like son.
Cooper Hefner (33), the youngest son of Playboy (PLBY) founder Hugh Hefner, was planning to buy out the Playboy brand for a whopping $100 million. According to the Wall Street Journal, the latter, together with a group of investors, made the offer. The company's market value was said to be USD 50 million.
Hefner Jr, the son of Hefner and Kimberley Conrad, runs his own investment company, Hefner Capital. He grew up on the property next to the Playboy mansion and started his career at his father's company, Playboy Enterprises, Inc., while still at university[1].
The Playboy brand is now owned by the PLBY Group. The company is reported to have lost more than 90% of its value by 2021. However, Mr. Hefner has expressed his willingness to revitalize the brand by entering into new partnerships and licensing agreements.
"You could have all the money in the world, but it would still be hard to build the kind of brand awareness that Playboy has," he told a US newspaper, adding that he would like to become CEO.
In 1999, the company had a market value of USD 671 million
Hefner started Playboy in 1953 with $1000 borrowed from his mother. The cover of the first issue featured a picture of Marilyn Monroe. The 50 000 copies sold out in a flash and an empire was born, with the company's market value reaching $671 million in 1999.
Despite the achievements, things started to go downhill from 2000. The company is now said to have debts of more than USD 200 million[2].
Playboy rejects $100 million buyout offer from Hefner's son
The PLBY Group, which owns Playboy and other brands, announced that its board of directors has unanimously rejected a $100 million offer from Hefner.
"After careful review and consideration of Hefner's offer, our Board has determined that it undervalues Playboy's assets and is not in the best interests of PLBY Group shareholders," Ben Kohn, Chairman and CEO of PLBY Group, said in a statement.
Shortly afterward, PLBY Group's shares fell by more than 5%
Shortly afterward, PLBY Group's shares fell by more than 5%, and the company's market value fell to €60 million.
Hefner is known to have died in 2017. However, he is remembered by many as a leader of the social and cultural movements of the time, advocating freedom of speech, civil rights and sexual freedom[3].
"He showed a different way of life, represented by the Playboy brand, one of the most recognisable and enduring in history. He will be deeply missed by many, including his wife Crystal, my sister Christie and my brothers David and Marston, and others at Playboy Enterprises," said son Cooper.
PLBY merged with a Special Purpose Acquisition Company (SPAC) in February 2021. An SPAC is a temporary structure whose sole purpose is to raise funds from investors. The funds raised are usually held in an account until such time as an acquisition company is found, in which case PLBY was acquired. The Los Angeles-based PLBY Group is a high-impact entertainment and leisure company.
Playboy's last print magazine came out in March 2020, but last year the company relaunched a digital version under the name 'Centerfold'. The structure is similar to OnlyFans: users are charged a monthly access fee.
This summer, the PLBY Group announced plans to relaunch Playboy's print magazine once a year, with the first issue due in February 2025.
