Hugh Hefner Considers Sale Of Playboy Empire
The potential sell-off comes after Playboy dropped nude photos from its magazine and the famous mansion was put on the market.
Friday 25 March 2016 13:10, UK
Hugh Hefner's Playboy empire could soon be on the market as reports say the firm is exploring the possibility of a sell-off.
A spokesman for Playboy Enterprises told the AFP news agency it had employed the help of investment bank Moelis & Co to oversee the sale process, confirming an earlier report in the Wall Street Journal.
The company could be worth more than $500m (£354m), although it is hard to know for sure as it is privately owned.
Hefner currently owns around a third of the company and investment firm Rizvi Traverse Management the remaining two thirds.
They took the firm off the stock market in 2011, meaning it no longer has to release financial information.
The potential sale follows an announcement by Playboy magazine last year that it would no longer publish nude photographs in its print editions, saying that the availability of naked images online has made the concept "passe".
The Alliance for Audited Media says the magazine’s circulation has fallen from 5.6 million in 1975 to just 800,000 in 2015.
Its website stopped using fully nude photos in the summer of 2014.
In an attempt to adapt to changing times, the company has shifted its focus towards managing its brand and logo, but in January even the iconic Playboy mansion was listed for sale.
The Los Angeles estate has a $200m (£141m) price tag and comes with a wine cellar, tennis court and zoo licence.
However, a condition of the sale is that current owner Hefner will be able to lease the property for the rest of his life.