Playboy rejiggers int'l TV venture
Claxson to stop payments as Hef co. ups stakes
The Bunny venture's equity in 27 international nets in Europe and Asia will increase from 19.9% to 100%. Newly controlled nets will be folded into its entertainment group.
The adult-entertainment media empire will also retain its 19% stake in the Latin American and Iberian feevees controlled by former PBTI parent Claxson.
In return for giving up its stake, Claxson will no longer pay future library and programming payments to Playboy.
PBTI had a $100 million obligation over six years that paid for international rights to programming made by Playboy before 1999; $57.5 million remains outstanding.
Playboy also received $34.2 million from PBTI in quarterly payments for international television rights to programming that it created after 1999.
Cash flow issues
Analysts say the money PBTI owed Playboy Enterprises has a big influence on Playboy's overall cash flow, but Playboy disagrees.
"The international television business will be cash positive. It will contribute cash," said Playboy senior veepee of communications Martha Lindeman, who added that the company was exploring a 50% buyout option that would have cost Playboy cash anyhow.
As a result of the deal, Claxson will also relinquish its 3% equity stake in Playboy.com.
Claxson, backed by the Cisneros Group, has been hit by a depressed economy in Argentina. Nasdaq delisted the pay TV programmer in October.
