Paper is so passe‘. So much so that even the mighty Hugh Hefner is looking to turn his printing company into a licensing company. (APN prints and Fairfax licences?)
Playboy Enterprises is getting more time to transform itself into a licensing company from an aging publisher at risk of breaching its loan agreements as readers desert print.
The company founded by Hugh Hefner in 1953 refinanced $147 million of first-lien debt with a single lender after its financial performance deteriorated, increasing the risk it wouldn’t be able to comply with its financial obligations.
Standard & Poor’s last month said the publisher was “vulnerable” because of “sporadic operating shortfalls,” competition in brand licensing and a worsening outlook for print media.
Shareholders in the likes of APN and Fairfax are showing unusual confidence in their investments, although to be honest, most of that comes from their interest that lie outside the production of printed daily newspapers. Read more »