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Hugh Hefner Completes Deal To Take Playboy Private

CHICAGO (CBS) -- Playboy founder Hugh Hefner has completed his effort to take his adult empire private.

Hefner's Icon Acquisition Holdings LP says more than enough shares of Playboy Enterprises Inc. were tendered for the buyout to go through. The $6.15-per-share deal was funded with $195 million of debt and $185 million from the private investment firm, Rizvi Traverse, and Playboy management, including Hefner.

Under the deal, Rizvi Traverse will own about 60 percent of the company. Hefner will own about 37 percent, and other executive management will have the remaining 3 percent.

Playboy Magazine was founded in 1953, but has struggled to lure readers and advertisers as adult content on the Internet bloomed.

Hefner first announced plans to take the company private in January. At the time, he said the move will give the company flexibility to restore Playboy to its unique position, and to expand business around the world.

In addition to its namesake magazine, the Playboy empire also includes the Playboy TV and Spice cable channels, several Playboy Web sites, and other divisions. The company also once ran 40 Playboy Clubs, including the original club at 116 E. Walton St. But the only Playboy Club now in business is at the Palms Casino Resort in Las Vegas.

Playboy is headquartered at 680 N. Lake Shore Dr. in Chicago.

(TM and © Copyright 2010 CBS Radio Inc. and its relevant subsidiaries. CBS Radio and EYE Logo TM and Copyright 2010 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed. The Associated Press contributed to this report.)

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