Friday, February 20, 2009

Playboy Reports Huge Loss

During a conference call today announcing Playboy’s fourth quarter and year-end 2008 financial results, interim chairman and CEO Jerome Kern was asked by an analyst if, now that longtime CEO Christie Hefner is no longer with the company, it will consider a sale and/or changes in the strategic direction of Playboy magazine.

“Yes, we’re open to discussions,” Kern said.

Playboy reported a year-end net loss of $156.1 million in 2008, compared to a net gain of $4.9 million during 2007. The majority of that loss came during the fourth quarter, which saw a profit loss of $145.7 million due, in part, to $157.2 million in impairment and restructuring charges. -
Reason is kind of obvious: internet porn. This is the same reason why print journalism is becoming obsolete in general: people are turning to the internet.

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