Playboy Enterprises Spends $12M to Enhance Online Infrastructure
By Bill Mickey
According to its 10-Q filing, Playboy Enterprises Inc. purchased at the end of the third quarter an “online distribution business” called ICS for $12 million. According to Jay Jay Nesheim, VP public relations, the acquisition is part of Playboy’s strategy to “expand online revenues through bolt-on acquisitions in that space. We acquired an affiliate program infrastructure that will give us the opportunity to expand our traffic reach across all of our properties – including the subscription clubs, online store and new digital Playboy magazine.”
. In early November the company bought back chief creative officer and editor-in-chief Hugh Hefner’s share of series A preferred stock for $6.9 million. The buy-back of Hef’s stock gives the company 97 percent ownership of outstanding equity. Playboy is now in discussions with a remaining preferred shareholder who owns about $5 million worth of the Web site’s preferred stock.