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[PML1] Playboy Shares Rise 75% Over 5 Days

Mister Coke
Tue, 17 Nov 2009 07:31:14 -0800

 Playboy Shares Rise 75% Over 5 Days
By Rhett Pardon, XBIZ.com <http://www.xbiz.com/>
 Mon, Nov 16 2009 02:00pm PST
 CHICAGO — While rumors swirl over Playboy’s future, its stock has
catapulted.

Playboy Enterprises shares climbed to $4.78 Monday afternoon on the New York
Stock Exchange at market close, a 75 percent hike in the past five days of
trading and nearly five times its 52-week low of $1.03 a share.

In the past week several suitors have reportedly been in talks for the adult
entertainment giant — Playboy executive Jim Griffiths teaming with Golden
Gate Capital and Iconix, which owns and licenses brands such as London Fog,
Danskin, Candies, Joe Boxer and Rocawear.

Earlier this year, Virgin Media, Apollo Capital Partners and Providence
Equity Partners also reportedly heard Playboy's sales pitch.

On Friday, RBC Capital Markets noted that any deal for Playboy will be one
that involves some form of partnership.

"Given that the real long-term value creation opportunity for Playboy is
clearly on the licensing side, we think chatter regarding a partnership
makes some sense," RBC analyst David Bank said.

RBC, in its note, said that because Playboy founder Hugh Hefner owns about
70 percent of the stock, he would have to give the green light to any
acquisition.

RBC said chances of a deal are slim as Hefner likely will want to see what
the Playboy’s new management has planned. The company recently hired a CEO
Scott Flanders.

“We think the wildcard here is Hugh Hefner," Bank said. "He could be ready
to liquidate his holdings, detach from Playboy and his associated
lifestyle."

Bill Asher, who co-owns Vivid Entertainment, concurs.

Asher told the Chicago Tribune on Monday that he has bought more than 1
million Playboy shares in the past year.

"I think there's a good chance Hefner is going to sell if he gets the right
price," said Asher, who noted that "the real money is selling Playboy socks
in China."

"It would take very little to make it the hottest brand in the world, as it
was 30 years ago," he said.

Meanwhile, in separate company news Monday, Playboy announced Linda G.
Havard's decision to step down as executive vice president and chief
financial officer effective Dec 31.

"She has done an exceptional job over the past 12 years in managing the
company's financial, treasury, accounting and technology functions,”
Flanders said.

Havard joined Playboy in 1997 from ARCO, where she served as vice president
of corporate planning.
http://www.xbiznewswire.com/view.php?id=114876

-- 
Mister Coke


[Non-text portions of this message have been removed]



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  • [PML1] Playboy Shares Rise 75% Over 5 Days Mister Coke