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PLBY Group Rejects Unsolicited Offer for Its Playboy Assets

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PLBY Group announced that its Board of Directors has unanimously rejected an unsolicited, non-binding offer from Cooper Hefner and Hefner Capital to acquire the Company's Playboy assets. The proposal, publicly disclosed on October 21, 2024, was deemed to substantially undervalue the Playboy assets and not serve stockholders' best interests. CEO Ben Kohn stated that the company will continue pursuing its Playboy-focused, asset-light model to better support long-term stockholder value. The Board will continue evaluating all options and opportunities for Playboy.

PLBY Group ha annunciato che il suo Consiglio di Amministrazione ha respinto all'unanimità un'offerta non richiesta e non vincolante da parte di Cooper Hefner e Hefner Capital per acquisire gli asset Playboy della Società. La proposta, resa pubblica il 21 ottobre 2024, è stata considerata sostanzialmente sottovalutare gli asset Playboy e non servire nel migliore interesse degli azionisti. Il CEO Ben Kohn ha dichiarato che l'azienda continuerà a perseguire un modello focalizzato su Playboy e leggero in termini di asset, per supportare meglio il valore a lungo termine per gli azionisti. Il Consiglio continuerà a valutare tutte le opzioni e opportunità per Playboy.

PLBY Group anunció que su Junta Directiva ha rechazado por unanimidad una oferta no solicitada y no vinculante de Cooper Hefner y Hefner Capital para adquirir los activos de Playboy de la Compañía. La propuesta, hecha pública el 21 de octubre de 2024, fue considerada como una subestimación significativa de los activos de Playboy y no beneficiaba los mejores intereses de los accionistas. El CEO Ben Kohn afirmó que la empresa continuará persiguiendo su modelo centrado en Playboy y ligero en activos para respaldar mejor el valor a largo plazo de los accionistas. La Junta seguirá evaluando todas las opciones y oportunidades para Playboy.

PLBY 그룹은 이사회가 Cooper Hefner와 Hefner Capital의 비공식적이고 비구속적인 제안을 만장일치로 거부했다고 발표했습니다. 플레이보이 자산을 인수하겠다는 의도로 제안된 이 사항은 2024년 10월 21일 공개되었습니다. 이 제안은 플레이보이 자산의 가치를 상당히 저평가한다고 판단되었으며, 주주들의 최선의 이익에 부합하지 않는다고 여겨졌습니다. CEO Ben Kohn은 회사가 장기적인 주주 가치를 지원하기 위해 플레이보이에 초점을 맞춘 자산 경량 모델을 지속적으로 추구할 것이라고 밝혔습니다. 이사회는 플레이보이에 대한 모든 옵션과 기회를 계속 평가할 것입니다.

PLBY Group a annoncé que son Conseil d'Administration a rejeté à l'unanimité une offre non sollicitée et non contraignante de Cooper Hefner et Hefner Capital pour acquérir les actifs Playboy de la Société. La proposition, rendue publique le 21 octobre 2024, a été jugée considérablement sous-évaluée par rapport aux actifs Playboy et ne sert pas au mieux les intérêts des actionnaires. Le PDG Ben Kohn a déclaré que l'entreprise continuerait à poursuivre son modèle axé sur Playboy et léger en actifs pour mieux soutenir la valeur à long terme des actionnaires. Le Conseil continuera d'évaluer toutes les options et opportunités pour Playboy.

PLBY Group gab bekannt, dass der Vorstand einstimmig ein unaufgefordertes, nicht bindendes Angebot von Cooper Hefner und Hefner Capital zur Übernahme der Playboy-Assets des Unternehmens abgelehnt hat. Der Vorschlag, der am 21. Oktober 2024 öffentlich gemacht wurde, wurde als erheblich unterbewertend für die Playboy-Assets angesehen und dient nicht den besten Interessen der Aktionäre. CEO Ben Kohn erklärte, dass das Unternehmen weiterhin sein Playboy-fokussiertes, asset-light Modell verfolgen werde, um den langfristigen Wert für die Aktionäre zu unterstützen. Der Vorstand wird weiterhin alle Optionen und Möglichkeiten für Playboy bewerten.

Positive
  • Board's unanimous confidence in current business strategy
  • Commitment to asset-light model for long-term value creation
Negative
  • Received undervalued acquisition offer for core Playboy assets
  • Potential uncertainty regarding future strategic direction

Insights

The rejection of Cooper Hefner's unsolicited bid for Playboy assets represents a significant strategic decision for PLBY Group. The company's current $61.6M market cap suggests significant undervaluation compared to the brand's historical value and global recognition. The Board's commitment to an asset-light model focuses on licensing and digital transformation, which could potentially yield higher margins and better returns than traditional operations.

The decision to reject the offer indicates management's confidence in extracting more value from the Playboy brand independently. However, this also puts pressure on leadership to deliver on their asset-light strategy amid challenging market conditions. The stock has seen significant decline from its peak, making the company potentially vulnerable to future acquisition attempts at higher valuations.

The rejection of Hefner's offer highlights the complex valuation dynamics of iconic legacy brands in the digital age. Playboy's global brand recognition and established licensing infrastructure represent significant untapped potential in emerging markets and digital platforms. The company's transition to an asset-light model aligns with modern brand monetization strategies, focusing on intellectual property licensing rather than traditional media and operations.

The board's decision suggests they believe the brand's value extends beyond its historical association with the Hefner family, positioning it as a broader lifestyle and digital content platform. This strategic direction could unlock new revenue streams while maintaining brand equity, though execution risks remain in today's competitive digital landscape.

The Proposal Significantly Undervalues Playboy and Is Not in the Best Interests of Its Stockholders

LOS ANGELES, Oct. 24, 2024 (GLOBE NEWSWIRE) -- PLBY Group, Inc. (NASDAQ: PLBY) (“PLBY Group” or the “Company”), a leading pleasure and leisure lifestyle company and owner of Playboy, one of the most recognizable and iconic brands in the world, announced today that the Company’s Board of Directors (the “Board”) has unanimously rejected an unsolicited, non-binding offer from Cooper Hefner and Hefner Capital, LLC (together, “Hefner”) to acquire the Company’s Playboy assets on the terms publicly disclosed to the press by Hefner on October 21, 2024.

“After careful review and consideration of Hefner’s unsolicited proposal, our Board determined that the proposal substantially undervalues the Playboy assets and is not in the best interest of PLBY Group’s stockholders,” said Ben Kohn, Chief Executive Officer and a Director of PLBY Group. “While we certainly understand and are appreciative of the interest in Playboy’s unparalleled brand, the Board is confident that the Company’s continuing pursuit of its Playboy-focused, asset-light model will better support long-term value for stockholders. The Board will continue to evaluate all options and opportunities for Playboy.”

About PLBY Group, Inc.
PLBY Group, Inc. is a global pleasure and leisure company connecting consumers with products, content, and experiences that help them lead more fulfilling lives. PLBY Group’s flagship consumer brand, Playboy, is one of the most recognizable brands in the world, driving billions of dollars in global consumer spending, with products and content available in approximately 180 countries. PLBY Group’s mission—to create a culture where all people can pursue pleasure—builds upon over 70 years of creating groundbreaking media and hospitality experiences and fighting for cultural progress rooted in the core values of equality, freedom of expression and the idea that pleasure is a fundamental human right. Learn more at http://www.plbygroup.com.

Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. The Company’s actual results may differ from their expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect”, “estimate”, “project”, “budget”, “forecast”, “anticipate”, “intend”, “plan”, “may”, “will”, “could”, “should”, “believes”, “predicts”, “potential”, “continue”, and similar expressions (or the negative versions of such words or expressions) are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, the Company’s expectations with respect to future performance, growth plans and anticipated financial impacts of its strategic opportunities and corporate transactions.

These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from those discussed in the forward-looking statements. Factors that may cause such differences include, but are not limited to: (1) the inability to maintain the listing of the Company’s shares of common stock on Nasdaq; (2) the risk that the Company’s completed or proposed transactions disrupt the Company’s current plans and/or operations, including the risk that the Company does not complete any such proposed transactions or achieve the expected benefits from any transactions; (3) the ability to recognize the anticipated benefits of corporate transactions, commercial collaborations, commercialization of digital assets, cost reduction initiatives and proposed transactions, which may be affected by, among other things, competition, the ability of the Company to grow and manage growth profitably, and the Company’s ability to retain its key employees; (4) costs related to being a public company, corporate transactions, commercial collaborations and proposed transactions; (5) changes in applicable laws or regulations; (6) the possibility that the Company may be adversely affected by global hostilities, supply chain delays, inflation, interest rates, foreign currency exchange rates or other economic, business, and/or competitive factors; (7) risks relating to the uncertainty of the projected financial information of the Company, including changes in the Company’s estimates of cash flows and the fair value of certain of its intangible assets, including goodwill; (8) risks related to the organic and inorganic growth of the Company’s businesses, and the timing of expected business milestones; (9) changing demand or shopping patterns for the Company’s products and services; (10) failure of licensees, suppliers or other third-parties to fulfill their obligations to the Company; (11) the Company’s ability to comply with the terms of its indebtedness and other obligations; (12) changes in financing markets or the inability of the Company to obtain financing on attractive terms; and (13) other risks and uncertainties indicated from time to time in the Company’s annual report on Form 10-K, including those under “Risk Factors” therein, and in the Company’s other filings with the Securities and Exchange Commission. The Company cautions that the foregoing list of factors is not exclusive, and readers should not place undue reliance upon any forward-looking statements, which speak only as of the date which they were made. The Company does not undertake any obligation to update or revise any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based.

Contact:
Investors: FNK IR – Rob Fink / Matt Chesler, CFA – investors@plbygroup.com
Media: press@plbygroup.com


FAQ

Why did PLBY Group reject Hefner Capital's offer for Playboy assets?

PLBY Group's Board unanimously rejected the offer because it substantially undervalued the Playboy assets and was not in the best interest of stockholders.

When was the unsolicited offer for PLBY Group's Playboy assets made?

The unsolicited offer was publicly disclosed by Hefner Capital on October 21, 2024.

What is PLBY Group's strategy moving forward after rejecting the offer?

PLBY Group will continue pursuing its Playboy-focused, asset-light model while evaluating all options and opportunities for Playboy to support long-term stockholder value.

PLBY Group, Inc.

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