Hugh Hefner to take Playboy private with sweetened $207-mn offer

Hugh Hefner is taking the gentleman's racy Playboy magazine that he launched in 1953 private, after its publisher Playboy Enterprises Inc (PEI) agreed to his sweetened offer of around $207 million.

The popular men's magazine that features feminine nudes as well as journalism and fiction, has a long history of publishing short stories by writers such as Arthur C. Clarke, Ian Fleming, Vladimir Nabokov and P. G. Wodehouse, among others. It features monthly interviews of notable public figures, such as artists, architects, economists, composers, conductors, film directors, journalists, novelists, playwrights, religious figures, politicians, athletes and race car drivers.

''With the completion of this transaction, Playboy will come full circle, returning to its roots as a private company,'' Hefner said in a statement. ''I believe this agreement will give us the resources and flexibility to return Playboy to its unique position and to further expand our business around the world.''

In July 2010, Hefner, who owns around 69.5 per cent of Playboy's Class A common stock and 27.7 per cent of its Class B stock, offered to buy the remaining for $5.50 per share in cash that valued the Texas-based PEI at around $185 million. (See: Hugh Hefner bids $185 million to buy out Playboy)

But FriendFinder Networks, owner of saucier rival Penthouse magazine immediately topped the bid with a $210 million offer.

While tabling his bid in July, Hefner had said that he intended to partner with private investment firm Rizvi Traverse Management LLC and that he had discussions with the firm in connection with the transaction. He also said that Rizvi Traverse had contacted major lenders regarding potential financing and had assured ample financial resources to complete the transaction.