Hugh Hefner’s offer to purchase the shares of Playboy Enterprises Inc. that he doesn’t already own may have been foreshadowed by a posting on Twitter.
“Meeting with Playboy CEO Scott Flanders this afternoon to discuss direction of the company,” Hefner wrote three days ago. The item appeared at 2:43 p.m. New York time, when U.S. stock exchanges were open for trading.
As the CHART OF THE DAY indicates, traders and investors didn’t take the hint. Playboy’s Class B shares closed at $3.94, a penny above their low for the day. They were changing hands at the low when the posting was made.
Hefner, the company’s 84-year-old founder, joined with Rizvi Traverse Management LLC to bid $5.50 a share today for both classes of its shares. He owns 70 percent of its Class A stock, having one vote each, and 28 percent of its non-voting Class B stock.
Class A shares rose as high as $6.71 in November, when two people close to the situation said Iconix Brand Group Inc. was holding talks with the company on a possible takeover. Class B, on the other hand, last traded above the offer’s price in June 2008.
Hefner has about 300,000 followers on Twitter, a social- networking site for sending messages of 140 characters or less. His postings typically are about movies he watches, board games he plays and media coverage of him. He also helps promote a new documentary film, “Hugh Hefner: Playboy, Activist and Rebel.”
To contact the reporter on this story: David Wilson in New York at firstname.lastname@example.org