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#175348 - 06/22/06 07:25 PM
Re: playboy buys club jenna
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Porn Jesus
Registered: 09/20/05
Posts: 9197
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Quote:
Playboy is a publicly traded company(pla), so I am wondering if it would be in one of their statements.
Actually, they did, See their SEC 8-K here. The amount of detail required in these filings depends on the type of the transaction (SEC Rule 13, I believe). In this case, PLA is purchasing a private corporation. Those terms do not need to be disclosed publicly. However you will probably see notes about it in their next 10-Q (quarterly financial statement), and you almost certainly will see some treatment of it in their next audit--next April.
PLA would only be required to discuss the details of the transaction if (i) they tendered an offer to buy a publicly-owned entity (ii) PLA was issuing stock to pay for the acquisition or (iii) PLA accounted for the transaction as a "merger of equals."
I think the questions to ask are: (i) how long is Jenna required to add content to Playboy? (ii) what is the economic value of that agreement? The minute she leaves that agreement, the name and income-generating power of "Club Jenna" plummets. The same thing is happening to danni.com right now.
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