LOS ANGELES — Luxembourg-based Byborg Enterprises SA is investing $22.35 million in Playboy parent company PLBY Group.
The LiveJasmin owner signed an equity investment agreement with the iconic brand for 14.9 million newly issued shares of PLBY Group for $1.50 per share, with the purchase expected to close Nov. 8.
Additionally, the two companies signed a nonbinding letter of intent for Byborg to license digital content from Playboy and operate some of the brand's digital businesses, with PLBY receiving a minimum of $20 million per year for 15 years, or $300 million total.
"Our strategic relationship will combine the rich heritage of the Playboy brand with one of the best premium online entertainment companies in the market," said PLBY CEO Ben Kohn. "I am most excited about the new products Byborg has developed and how the Playboy brand can bring those to mass audiences. The proposed transaction also represents one of the most significant steps to date in our transition to an asset-light business model."
As part of the arrangement, the shares will be subject to a one-year lock-up period. In 2025, PLBY Group will appoint a director nominated by Byborg and add a mutually agreed-upon independent director.
"Playboy is one of the most iconic lifestyle brands recognized worldwide, resonating across generations," said Byborg Managing Director Andras Somkuti. "Investing in PLBY Group and collaborating to enhance the brand and its assets for greater reach presents an exciting opportunity for us. We see tremendous potential to grow existing businesses, develop innovative products, create captivating experiences, and drive substantial growth."
For more information on Byborg Enterprises, click here.