Playboy being pursued by two buyers

Two buyers are contending for Playboy magazine. Playboy Enterprises Inc., publishers of the iconic, but troubled, title is being pursued by Iconix Brand Group and a group of private investors led by Jim Griffiths, Playboy's former entertainment president, according to a story in the Los Angeles Times. The idea is to pay perhaps $300 million and take the company private.

From dominance in the men's market through the 60s and 70s, Playboy has been slipping, battered by ready availability of online soft and not-so-soft porn. Its stock fell to just above $1 a share last fall and the magazine recently reduced its guaranteed rate base to 1.5 million from 2.6 million. Christie Hefner, founder Hugh Hefner's daughter, left as CEO last spring.

News of the takeovers drove up Playboy stock 42% yesterday from $1.21 to $4 07. But the New York Post expressed scepticism that any deal is imminent:

One potential stumbling block is the whim of 83-year-old Hugh Hefner, who controls 70 percent of Playboy's stock.The legendary founder is looking for a premium as he tries to pay off debt and finance his lavish lifestyle while at the same time keeping his pioneering porn publication alive.