Gaming Deals At Play In $381M Playboy Sale

By Ben Hamill - October 07 2020
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Gaming Deals At Play In 381M Playboy Sale

The late Hugh Hefner’s Playboy brand has long enjoyed strong ties with the world of casinos and gaming. And now that New York special acquisition vehicle Mountain Crest Acquisition Corp. is forking out a cool $381 million to acquire Playboy Enterprises, we’re likely to see several future gaming company acquisitions.

The special purpose acquisition company (SPAC) will reportedly deliver back to Playboy investors a total of 23.9 million shares priced at $10 per share. Along with the returned shares, the company will apparently also take on $142 million in debt. When all is said and done, the company is practically now valued at $318 million, from whence also then the offer tabled in terms of the acquisition.

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Playboy To Relist Publicly

According to information made available by the buyer, Mountain Crest will upon completion of the take-over be renamed. The entity will however remain listed under the ticker PLBY on the Nasdaq Stock Market. Also, the newly acquired company will continue to be led by Playboy Chief Executive Officer Ben Kohn.

Playboy currently enjoys several online gaming partnerships, including associations alongside Scientific Games and Microgaming, both leading developers of online games and entertainment experiences.

Highly notable is that in its investor presentation recently filed with the Securities and Exchange Commission, Playboy makes mention of several possible acquisitions spread out over four industries as being potential future targets. Playboy then goes on to name by means of examples, PointsBet, RummyCircle.com, and 888 Holdings.

Gaming And Everything Else

Aside from an interest in gaming, which Kohn says has historically yielded fantastic results, Playboy will in future focus on several other areas of business also. These, once Playboy has returned to a position of public listing, are to include interests in beauty and grooming, style, fashion, apparel, and sexual wellness.

Acquisitions such as that of Playboy by Mountain Crest have been gaining a whole lot of traction in recent times, with SPACs focusing more frequently than ever before on the world of gaming.

Following the going-public of DraftKings, many others are expected to follow suit – with some actual deals currently already far in the pipeline. The lure of SPACs is mainly that they’re pretty much blank checks gone public, with no onus on these entities to even inform investors of the intended nature of the business in terms of industries and transactions.

But since sectors such as online gaming and sports betting rank so high on Wall Street’s agenda in terms of industries of interest, blank check companies interested in trading in areas related to gaming are beginning to reveal those interests to investors with increased frequency.

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