Penthouse owner makes competing bid for Playboy

July 15, 2010 11:26:30 AM PDT
The owner of Penthouse magazine has made a formal bid for Hugh Hefner's Playboy empire despite Hefner's insistence that he does not intend to sell the company. Penthouse corporate parent FriendFinder Networks Inc. said Thursday it will offer $210 million for Playboy Enterprises Inc.

The bid comes just a few days after Hefner proposed to buy out the stake he doesn't already own in a deal that would value the company at $185 million.

The catch: Hefner already owns nearly 70 percent of Playboy's voting shares.

RBC Capital Markets analyst David Bank notes that if Hefner "doesn't want to sell, there's no deal."