ILLUSTRATION. Playboy Enterprises is approaching a deal to go public through a merger with Mountain Crest Acquisition Corp.
Source: Reuters | Editor: Barratut Taqiyyah Rafie
KONTAN.CO.ID – NEW YORK. Source Reuters whispered, one more step, Playboy Enterprises approaching a deal for go public through a merger with Mountain Crest Acquisition Corp. Through this action, Mountain Crest is said to be paying the owner of Playboy magazine around US $ 425 million, including all debts.
Quoting ReutersThe partnership with Mountain Crest will see Playboy return to the stock market, nine years after it went private in a $ 207 million deal led by late founder Hugh Hefner and private equity firm Rizvi Traverse Management.
The source said on Wednesday (23/9/2020), Mountain Crest, a special purpose acquisition (SPAC) company, is expected to announce a deal with Playboy at the end of this month. However, he warned that the two sides’ agreement could fail.
According to sources Reuters Knowing the details of this information, Mountain Crest is currently in discussions with investors who will contribute about US $ 100 million to the deal in the form of private investment in public equity.
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The source requested anonymity as this discussion is private. A Playboy representative declined to comment. Mountain Crest Chief Executive Suying Liu did not comment when contacted by phone. Executives at Rizvi Traverse did not immediately respond to requests for comment.
Reuters reported last week that Playboy was exploring going public through the SPAC merger. The New York Post reported exclusive talks with Mountain Crest on Tuesday.
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Note alone, Playboy earlier this year stopped printing its flagship magazine, ending nearly seven decades of newsstand sales that began in 1953 with a debut edition featuring Marilyn Monroe.
The company has grown beyond its media business to renew itself as a lifestyle brand and is eyeing expansion in the sexual health sector.
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