Playboy in talks to sell firm to Iconix

November 13, 2009|Associated Press

CHICAGO - Playboy Enterprises Inc. is in talks to sell its iconic men’s magazine to Iconix Brand Group Inc.

The news of the talks sent Playboy’s stock up by as much as 66 percent yesterday. It closed up $1.21, or 43 percent, at $4.07. Iconix shares fell 39 cents, or 3.2 percent, to $11.76.

Playboy, based in Chicago, and Iconix declined to comment.

A news report by Bloomberg said Iconix has examined Playboy’s finances, but there’s no guarantee of a deal, citing people close to the situation.

Iconix, based in New York, owns brands that it licenses to manufacturers, such as Candie’s and London Fog.

Neil Cole, Iconix chief executive, has been looking for more brands to acquire, while Playboy has been looking for a buyer since Scott Flanders became chief executive in June, replacing longtime head Christie Hefner, the daughter of Hugh Hefner.

In the third quarter, Playboy’s ad revenue fell 44 percent to $9.45 million, according to the Publishers Information Bureau.