Playboy shares plunge on report sale talks are off
samsung1
Ohio
Shares of Playboy Enterprises Inc. fell Wednesday following a report that talks to sell the Chicago company to Iconix Brand Group Inc. have collapsed.
Iconix, the New York-based brand licensing firm, is breaking off discussions after determining it would be too complicated to divest, shut down or find partners for the Playboy units it doesn't want to operate, according to a Bloomberg report late Tuesday, citing unnamed sources. Bloomberg also reported that talks could be revived, citing an unnamed source.
Speculation that Chicago-based Playboy could be acquired began earlier this year, shortly after former Chief Executive Christie Hefner left in December. Iconix's name began to surface as a potential buyer this fall.
The deal would have given Iconix the chance to license the Playboy brand to manufacturers and retailers. Iconix owns and licenses several well-known brands, including London Fog, Danskin and Joe Boxer.
Shares of Playboy tumbled 9.9 percent, to $3.46, Wednesday. The stock was trading as low as $1.10 in March as the media company struggled with challenges in several of its business, including adult pay television, print and digital content.
Iconix spokeswoman Tara Levy declined to comment. Playboy spokeswoman Martha Lindeman declined to comment.
Any decision about a purchase ultimately will come down to Hugh Hefner, Playboy's founder and public face, who controls about 70 percent of its voting stock. A buyer would not only have to persuade Hefner, 83, to relinquish control of the company he started 56 years ago, while also to stay involved, given his importance to the brand.
Revenue has fallen in the first three quarters of the year, and the company has cut costs in an attempt to keep up. It recently cut the guaranteed circulation of its namesake men's magazine to 1.5 million from 2.6 million.
http://www.chicagotribune.com/business/c…
Anyone else also notice how Playboy mailed out a "double issue" of Jan/Feb just this past week. Do they usually do this at the start of each year? I think they are doing this to save on shipping costs. I hope they don't start this as a normal thing because the "double issue" is not much different from a normal issue.
Iconix, the New York-based brand licensing firm, is breaking off discussions after determining it would be too complicated to divest, shut down or find partners for the Playboy units it doesn't want to operate, according to a Bloomberg report late Tuesday, citing unnamed sources. Bloomberg also reported that talks could be revived, citing an unnamed source.
Speculation that Chicago-based Playboy could be acquired began earlier this year, shortly after former Chief Executive Christie Hefner left in December. Iconix's name began to surface as a potential buyer this fall.
The deal would have given Iconix the chance to license the Playboy brand to manufacturers and retailers. Iconix owns and licenses several well-known brands, including London Fog, Danskin and Joe Boxer.
Shares of Playboy tumbled 9.9 percent, to $3.46, Wednesday. The stock was trading as low as $1.10 in March as the media company struggled with challenges in several of its business, including adult pay television, print and digital content.
Iconix spokeswoman Tara Levy declined to comment. Playboy spokeswoman Martha Lindeman declined to comment.
Any decision about a purchase ultimately will come down to Hugh Hefner, Playboy's founder and public face, who controls about 70 percent of its voting stock. A buyer would not only have to persuade Hefner, 83, to relinquish control of the company he started 56 years ago, while also to stay involved, given his importance to the brand.
Revenue has fallen in the first three quarters of the year, and the company has cut costs in an attempt to keep up. It recently cut the guaranteed circulation of its namesake men's magazine to 1.5 million from 2.6 million.
http://www.chicagotribune.com/business/c…
Anyone else also notice how Playboy mailed out a "double issue" of Jan/Feb just this past week. Do they usually do this at the start of each year? I think they are doing this to save on shipping costs. I hope they don't start this as a normal thing because the "double issue" is not much different from a normal issue.
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2 comments
i looked at the winter "double issue" this week. years ago, the single "Gala Christmas" issue used to be even bigger than this "double issue."
His magazine, once the industry standard, is now a wrinkled and embarassing version of it's once great self. The video and cable TV divisions are doing gangbuster business, but they are diminished by the flagship-the magazine.
The magazine needs to clean house and dump it's elitest, out of touch with America, staff. The writing is stuck in 1968, the car articles are cars no one can relate to, the clothing-who cares? And the bunnymag articles are self serving and uninteresting. Recently, they've nabbed real celebs, with Tara Reid, but lately it's been a diet of "Reality Stars". Who gives a shit about them?
Most of the models are air brushed to inhuman standards, making them uninteresting and unerotic.
Like I said,dump the magazine staff and get new blood. Get back in touch with blue collar America. Stop air brushing the models, and for God's sake-a silicone free issue dammit.