Playboy Looking For Buyers
It’s no secret the business of print media continues to suffer heavy losses as readers flock to computer screens and mobile devices for content—and that includes looking at naked women.
Citing a net loss of more than $150 million in 2008, as well as the departure of CEO Christie Hefner, daughter of founder Hugh Hefner, interim chairman and CEO Jerome Kern said that Playboy is open to a change in strategic direction.
And that includes the sale of the enterprise.
“Our financial performance is not reflective of [Playboy’s] potential,” Kern said in a statement. “Over the past several months, the company has accelerated the pace of expense reduction designed to bring our cost structure in line with current market realities and the positioning of our businesses going forward.”
The magazine’s revenue in 2008 was $292.1 million, down 14 percent from the 2007 figure of $339.8 million, with a significant portion of the losses being incurred during last year’s fourth quarter. As a result, Playboy expects a 27 percent slide in advertising dollars during the first quarter of 2009.
Kern took over for Hefner after she announced late last year she was going to step down by the end of January.
In a synergistic move to streamline production costs, the company decided last month to combine its print and editorial operations, as well as shut down its New York offices.