Playboy Confirms It Will Go Public Via SPAC Merger

The iconic Hugh Hefner-founded Playboy Enterprises Inc plans to go public again soon with a Nasdaq listing under the symbol "PLBY." The reorganization will be carried out through a special purpose acquisition company.

What Happened: Playboy entered into a definitive merger agreement with Mountain Crest Acquisition Corp MCAC – a blank cheque company on Thursday. The popular brand has also roped in institutional and accredited investors for an additional $50 million investment. Mountain Crest will be renamed post-merger but would continue to trade on Nasdaq. Playboy CEO Ben Kohn will continue to lead the newly incorporated entity.

The adult magazine is also reportedly expanding its line of sexual wellness products with a focus on the erectile dysfunction markets, as well as the cannabis and liquor business.

Why Does It Matter: As a part of the definitive merger agreement, Mountain Crest will pump $100 million in Playboy’s balance sheet by way of unrestricted cash. The lifestyle brand plans to deploy these funds to enhance e-commerce offerings, lingerie, and exclusive Playboy accessories.

Playboy was privately held since 2011 when Hefner bought the lifestyle and entertainment magazine for $207 million. In 2017, after Hefner's death, the enterprise shifted its core business model from publishing to brand licensing.

Rizvi Traverse Management LLC bought a 35% stake in Playboy for $35 million in 2018.

Price Action: MCAC shares gained 1.59% on Thursday to close at $10.23.

Photo courtesy: Downtowngal via Wikimedia