It’s obvious that the world is undergoing major changes when Hugh Hefner finally agrees to sell his million-dollar empire. The 83-year-old media mogul and star of E!’s The Girls Next Door found his company suffering from financial damages and has decided to take measures against it.
The choice to put Playboy on the market was due to the losses experienced by the publication, particularly during the first quarter of 2009. It’s been reported that Hefner’s corporation got around $13 million in losses during the time. Playboy shares have only managed to hover, even as low $1.15.
Another reason that Hefner points towards is the Internet. Nowadays, their sales reached a mere three million per issue. When compared with 1972’s 7 million, this seems like nothing. The World Wide Web is incredibly easy to access, and it’s no surprise that hardly anyone makes an effort to buy the said magazine from their newsstands. With that, it really will get tougher for Playboy to survive.
Knowing how difficult the business is getting for him, Hef has put a price tag on Playboy. The company has actually sunk in value, and is just worth $100 million. But it looks like Hef’s lavish lifestyle needs to be kept at a cost three times more. He’s hoping to attract buyers by selling the publication for $300 million, which is equivalent to 200 million pounds.
Several other sources have reported that among the potential buyers is Virgin Media, owned by billionaire Richard Branson. While he could be thinking of jumping on the chance to buy the notorious corporation, he may want to consider how Playboy is having a hard time competing in the industry these days.
Having founded the company more than 50 years ago, Hugh Hefner might even consider retiring from his post if the sales of Playboy don’t increase. Everyone thought he’d never let go of his seemingly everlasting empire, but it seems like the economic recession just keeps hitting everything in its path.
-Maria Gonzalez, BuddyTV Staff Columnist
Source: Business Standard, Post Chronicle
(Image Courtesy of E!)