Metro Detroit firm to help take Playboy private

The world's most famous playboy is turning to a private equity firm in Michigan to help him get his empire back.

Hugh Hefner, 84, who founded Playboy Enterprises Inc. (NYSE: PLA) in 1953, has offered $122.5 million, or $5.50 a share for each share he doesn't own, to take his company private.

It was announced Monday morning that he has enlisted Birmingham-based Rizvi Traverse Management LLC to help with the buyout.

In late 2008, Hefner's daughter, Christie, resigned as chairman and CEO of Playboy.

Since then, speculation was that Playboy would seek a suitor for a merger or acquisition. But in a letter to his board of directors, Heffner said he won't sell his shares and rebuffed merger talks.

Hefner's offer was at a 40 percent premium to Friday's closing price of $3.94. Late Monday morning, shares were up almost one third to $5.25.

The company has 33.6 million shares of stock outstanding. Hefner owns more than four million shares in two stock classes.

Rizvi Traverse Management is a private equity firm founded in 2004 by Suhail Rizvi and John Giampetroni. It also has offices in New York, Los Angeles and Oxford, Conn.

Rizvi also operates Newbridge Film Capital, which makes production loans to independent film makers, and Clear Scope Partners, which provides strategic advice for those investing in or operating entertainment or media companies.

In 2005, through its Rizvi Opportunistic Equity Fund, the company helped recapitalize Beverly Hills, Calif.-based International Creative Management Inc., one of the largest talent agencies in the world.