The group that owns the declining Playboy brand on Thursday rejected a $100 million takeover offer from Cooper Hefner, the son of the magazine's late founder.
“After careful consideration of Mr. Hefner's unsolicited proposal, the board of directors believes that the proposal materially undervalues Playboy's assets and that it is a risky proposition for PLBY Group shareholders,” CEO Ben Cohn said in a statement. “I decided it wasn't in my best interest.”
“While we certainly understand and appreciate the interest in Playboy's unparalleled brand, the Board of Directors believes that the Company's continued pursuit of an asset-light model focused on Playboy will provide long-term benefits to shareholders. We believe we can better support the value of
The company said the board's decision was unanimous.
Playboy Group fell as much as 11% on the rejection news, but recouped some of its losses and fell 3% to close at 81 cents per share.
Cohn said the board “continues to evaluate all options and opportunities for Playboy” and left the door open to amending the contract.
Mr. Hefner, 33, announced Monday that he and his investment firm, Hefner Capital, have come forward to take back the company made famous by Hugh Hefner more than 70 years ago.
“The decision to acquire Playboy's assets was born out of a personal connection and the unique opportunity to reinvigorate a globally beloved brand,” Hefner said. told the Hollywood Reporter. “This initiative is designed to preserve the legacy built over decades and ensure that the creativity, values and cultural relevance that define Playboy are not lost.”
Hefner, whose investor group includes hedge funds and is one of Playboy's former licensing partners, told the Journal that he will assume the role of CEO.
“Aside from my personal relationship, it's a great American company and a great American brand,” Hefner told The Wall Street Journal. But it is “managed to the point of potential non-existence.”
Playboy went public in 2021 after merging with a special acquisition company, with its stock trading at $50, but has steadily lost money and relevance over the years.
The company ended publication of the iconic magazine, founded in 1953, in 2020, citing pandemic-era supply chain disruptions.
But Playboy has long struggled to find its footing in a rapidly evolving media landscape.
First, in the 1980s, it lost some of its key demographics to magazines such as Penthouse and Hustler, which published more explicit photos.
Playboy magazine became completely obsolete with the rise of the internet and the easy availability of pornography.
In 2015, Playboy announced it would stop publishing images of naked women in an effort to rebuild its brand and explore new markets, a move that met with little success.
Hugh Hefner, who wore a robe, died in 2017 at the age of 91. Four children survive, including Mr. Cooper, all of whom sold their shares in the company.
Cooper Hefner lamented the company's decline, blaming mismanagement for its demise.
“It's about getting into a business that Playboy has never run before,” he told the Journal.
He said these products “just don't resonate with consumers, customers or fans.”
“And the decline of the business and the relevance of the brand is a direct reflection of that in that it's rarely talked about today.”
