There's a lawsuit this week coming out of Los Angeles over Hugh Hefner's Playboy Mansion. The fight is over the value of the 29 room headquarters of the magazine empire. Hugh, 84, and Playboy Enterprises, Inc are claiming the value of the estate at 54 million according to Playboy according to a shareholder lawsuit.
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They claim Hugh and company are hiding the true value of the company’s assets in an effort to take it private without paying a fair price for the minority stake that Hefner doesn’t own, according to an amended complaint filed Feb. 4 in Delaware Chancery Court in Wilmington.
The lawsuit, originally filed in July, is one of at least two from shareholders challenging Hefner’s takeover attempt. Hefner has offered $6.15 for each share he doesn’t own, according to the lawsuit. Through two classes of stock, Hefner controls 69.5 percent of Playboy’s voting power.
Hefner paid $1.05 million for the property in 1971. Another home, a mile and a half from the Mansion, sold for 50 million. This marked the highest sale price in 2010 for a home in the greater Los Angeles. The Mansion has over 20,000 sq. ft. of house that sits on a HUGE lot in a very valuable area of LA.
The shareholders are seeking an injunction to prevent Playboy from closing the proposed buyout, which the board approved last month after a special committee of directors negotiated with other bidders, including FriendFinder Networks Inc., owner of Penthouse adult magazine.
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