Everyone knows that Playboy magazine only became so wildly popular because of its unique, creative, thought-provoking journalism. Not really, but it’s the excuse most often heard. Whatever the reason, Playboy’s empire grew from a $5 start to a multi-billion-dollar industry that covers a wide range of activity, including casinos and online gaming partnerships. While there have been slumps in its revenue reports over the years, Playboy Enterprises is about to be purchased by a special acquisition company (SPAC) that could reinvigorate the business segment. A deal by the Mountain Crest Acquisition Corp. SPAC to acquire Playboy should have the company hopping with excitement. 

The acquisition is reportedly worth around $415 million, according to the Reuters. It includes $58 million of Mountain Crest’s money, as well as another $50 million made available through private investment in public equity (PIPE) money gathered from institutional investors. $142 million in existing debt will be absorbed by the SPAC. Existing owners of the company will retain 66% of the company, which will simply be known as Playboy following the closing of the deal. That closing hinges on approval by the US Securities and Exchange Commission (SEC), and will also lead to a return of Playboy to public trading, with a listing on the NASDAQ exchange under the ticker PLBY.

Playboy had previously opened three branded casinos, starting with the first in 1966. That was located in London, and the company then opened another in Atlantic City 15 years later, followed by a third at the Palms Las Vegas in 2006. It also has a strong presence in the online gaming space from existing partnerships with Microgaming and Scientific Games. This latter segment has become increasingly enticing for Playboy, and it said last week that it is considering new tie-ups that could include gaming operators like PointsBet and 888Holdings. However, it did not specifically describe any deals that are currently in the works. 

Following successful approval of the acquisition, which could take up to three months, Mountain Crest will officially be known as Playboy and will be run by the latter’s current CEO, Ben Kohn. With renewed interest and a potential return to public trading, Playboy would have the financial support to push forward deeper into the gaming ecosystem. Kohn explained in the announcement of the potential acquisition that the company’s “casino-style digital gaming products with Scientific Games and Microgaming continue to see significant global growth,” which will serve as a catalyst for attracting more investments and an expansion into more areas of gaming. Perhaps Playboy sportsbooks will soon appear.