Playboy Enterprises is about to be acquired by a special acquisition company (SPAC) that may revitalise the market sector, although there have been slumps in its sales results over the years. A Mountain Crest Acquisition Corp. contract. SPAC should have the business jumping with enthusiasm in order to buy Playboy.
According to Reuters, the deal is reportedly worth about $415 million. It includes Mountain Crest ‘s money of $58 million, as well as another $50 million made available from institutional investors via private investment in public equity (PIPE) money. SPAC would absorb $142 million in current debt. The company’s current owners will hold 66 percent of the company, which will simply be known as Playboy after the deal is completed. The closing depends on the approval of the US Securities and Exchange Commission (SEC) and will also result in the return to public trading of Playboy, which will be listed on the NASDAQ exchange under the PLBY ticker.
Three branded casinos have previously been opened by Playboy, beginning with the first in 1966. That was located in London, and 15 years later , the company opened another in Atlantic City, followed by a third in 2006 at Palms Las Vegas. It also has a strong presence through established alliances with Microgaming and Scientific Games in the online gaming room. For Playboy, this latter segment has become increasingly attractive, and last week it said it is exploring fresh tie-ups that could include gaming operators such as PointsBet and 888Holdings. It did not, however, identify precisely any deals that are currently in the works.
Mountain Crest will officially be known as Playboy after effective approval of the purchase, which may take up to three months, and will be managed by the current CEO of the latter, Ben Kohn. Playboy will have the financial help to drive further deeper into the gaming environment with increased interest and a possible return to public trade. In the announcement of the potential acquisition, Kohn clarified that the company’s “casino-style digital gaming products with Scientific Games and Microgaming continue to see substantial global growth,” which will serve as a catalyst to draw further investment and expand into more gaming areas. Maybe Playboy sportsbooks are about to appear soon.
This marks a transition time for Playboy, which, since the death of creator Hugh Hefner in 2017, has undergone and continues to undergo a transformation. In favour of a new lifestyle brand intended to target a broader and larger market segment, the ‘gentleman’s magazine’ image is being dropped. However, it does not wander too far from home, since it always focuses on sexual well-being.