January 10, 2000 09:15pm
Playboy's Internet division files for IPO
Source: Reuters/Variety
by: Peter Ramjug
(WASHINGTON) - Adult entertainment online company Playboy.com Inc., the Internet division of Playboy Enterprises Inc., filed on Monday for an initial public offering designed to raise $50 million.
Christie Hefner, the 47-year-old daughter of Playboy empire founder Hugh Hefner, will serve as the acting chief executive officer and chairman of Playboy.com. She already holds the chairman and CEO posts at Playboy Enterprises, which publishes the famed Playboy magazine and operates adult cable television channels.
Chicago-based Playboy.com, whose Web sites are located online at http://www.playboy.com and www.cyberspice.com, offers original content on topics such as sex and relationships, pop culture and sports. Its Web sites got more than 100 million page views and 16 million visits in November.
It also features pay-per-view events like lingerie fashion shows and parties at the famed Playboy Mansion in Los Angeles.
In addition, Playboy.com offers Playboy Cyber Club, a subscription-based Web site containing more than 45,000 photos of women, as well as every interview from Playboy magazine and live chats with Playboy Playmates.
At the end of November, there were more than 37,000 subscribers to the Cyber Club, which was launched in 1997.
Playboy.com plans to use the net proceeds from the IPO to enhance and expand its Web sites, pursue various e-commerce opportunities, increase sales and marketing activities and explore possible acquisitions.
The terms of the IPO, such as the number of shares and their estimated price range, were not disclosed in the company's preliminary prospectus filed with the Securities and Exchange Commission. They are expected in future filings.
Playboy.com said it has not been profitable and expects to continue to post significant losses and negative cash flow from operations in the foreseeable future.
Its accumulated net losses totalled about $20.7 million as of the end of September. The losses were funded by borrowings from Playboy Enterprises, according to the SEC filing.
It has applied to trade its shares on Nasdaq under the symbol . Underwriters are Credit Suisse First Boston, Bear Stearns and Banc of America.
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