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Hugh Hefner Succeeds In Taking Playboy Private

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(credit: RICH SCHMITT/AFP/Getty Images)

(credit: RICH SCHMITT/AFP/Getty Images)

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LOS ANGELES (AP) — A partnership led by Hugh Hefner has succeeded in taking Playboy private.

Hefner’s Icon Acquisition Holdings LP says more than enough shares of Playboy Enterprises Inc. were tendered for the buyout to go through.

The $6.15-per-share deal was funded with $195 million of debt and $185 million from the private investment firm Rizvi Traverse and Playboy management, including Hefner.

Under the deal, Rizvi Traverse will own about 60 percent of the company. Hefner will own about 37 percent, and other executive management will have the remaining 3 percent.

The racy magazine Hefner launched in 1953 had its most popular years back in the 1970s. It has struggled to lure readers and advertisers as adult content on the Internet bloomed. Falling revenue has forced several rounds of layoffs since 2008.

(© Copyright 2011 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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