Playboy’s parent company, PLBY Group, has secured a $22.35 million equity investment from Luxembourg-based Byborg Enterprises SA, with the deal set to close by November 8, 2024. Byborg, the parent company of  LiveJasmin, will acquire 14.9 million shares of PLBY at $1.50 each, marking a significant step in Playboy’s shift towards an asset-light business model.

Under a concurrent non-binding letter of intent (LOI), Byborg and PLBY are in talks to finalize a licensing agreement that would see Byborg operate select Playboy digital assets, including the iconic brand’s digital intellectual property. The planned 15-year partnership includes a minimum guaranteed annual payment to PLBY of $20 million, totaling $300 million. Additionally, the agreement allows for profit-sharing tied to the performance of digital products under Byborg’s management.

“Partnering with Byborg enables us to leverage Playboy’s heritage while tapping into new digital revenue streams,” said PLBY Group CEO Ben Kohn in a statement. “Byborg’s innovations align with our strategy to bring the Playboy brand to broader audiences. This transaction is one of the most substantial steps toward our asset-light model.”

Byborg Managing Director Andras Somkuti echoed Kohn’s enthusiasm, describing Playboy as an “iconic lifestyle brand with multigenerational appeal.” Somkuti stated, “This investment is an opportunity to broaden Playboy’s reach through innovative digital products and captivating experiences. We see tremendous potential for growth and look forward to working together to achieve it.”

The investment includes a one-year lock-up period for Byborg’s new shares, meaning they cannot be sold for 12 months following the acquisition. Additionally, Byborg has entered into a standstill agreement that caps its stake in PLBY Group at 29.99%. The agreement also stipulates that beginning in 2025, PLBY Group will appoint a director nominated by Byborg and a new independent director to its board, potentially signaling future strategic alignments.

The deal is expected to boost PLBY Group’s market position amid its financial transformation and to generate new revenue from artificial intelligence services, webcam products, and other emerging digital assets. Byborg’s access to existing intellectual property and technology will be instrumental in the development of these new services, aligning with PLBY’s ongoing shift from physical to digital and licensed content.

Playboy’s pivot towards digital licensing aligns with PLBY’s recent moves to scale back physical operations and emphasize digital content. In August, the company announced the return of Playboy magazine in an annual print format, scheduled for a February 2025 release and set to coincide with the NFL’s championship weekend in New Orleans. The return of Playboy’s print edition, albeit limited, reflects the brand’s aim to balance its legacy appeal with modern digital expansion.

Shares of PLBY Group have experienced fluctuations this year, but the announcement of Byborg’s investment brought a rise in stock value, underlining market confidence in the asset-light strategy. PLBY Group’s financial reorganization also included shedding assets from its sexual wellness and apparel lines, including the popular brands Lovers and Yandy.

The PLBY-Byborg deal reflects a broader trend where content licensing and brand management are increasingly pivotal. As Playboy positions itself for growth in digital spaces, Byborg’s experience in premium content and AI-driven consumer engagement offers the potential to diversify Playboy’s brand and extend its reach.

So, what will the Playboy/Live Jasmin partnership look like? Only time will tell.

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