
Due to increasing competition in the market, Playboy Enterprises Inc. is considering selling its assets. But at the same time, the company is also looking in the direction of the start-ups market - some of the young startups could potentially refresh the brand and make it popular for a new audience.
To date, Playboy is experiencing certain concerns from other services, as a huge number of users prefer to view content on Snapchat or similar social networks. One of these was Arsenic, which has 500,000 daily views on Snapchat and nearly 1 million Instagram subscribers. For comparison, Playboy has about 4.5 million Instagram subscribers at the moment. The daily number of views Arsenic almost equaled the sales of magazines Playboy - from 5.6 million copies in 1975, it fell to 800 thousand in recent years.
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That is why Playboy is considering the possibility of absorbing Arsenic and the subsequent attraction of a new audience for its brand. Representatives of Arsenic and Playboy so far refused to comment on the rumors of a takeover.
“We admire Playboy and their rich history, but for now we will refrain from commenting. We are simply focused on our future, ” said Arsenic CEO Billy Hovkins for Business Insider.
Taking into account the recent investment of $ 750 thousand in Arsenic, the amount of the transaction may amount to several million dollars. The estimated cost of Playboy at the current moment is approximately $ 500 million - approximately for this cost, Playboy Enterprises Inc. is considering the
possibility of selling its own assets . In 2015, the Playboy brand brought $ 38 million in profits as part of the sale of media content and $ 55 million thanks to the sale of a license.
Sources of the publication The Wall Street Journal note that the company Playboy Enterprises Inc. may sell off assets at auction. Nevertheless, it is possible that Playboy Enterprises Inc. give up the idea of selling your own business after taking over one of the startups and continue to develop your own brand.