PLBY Group (PLBY) Announces Strategic Partnership with Byborg Enterprises SA

PLBY Group, Inc. (NASDAQ: PLBY) (“PLBY Group” or the “Company”), owner of Playboy, one of the most recognizable and iconic brands in the world, announced today the signing of a significant equity investment by Byborg Enterprises SA (“Byborg”), a privately held premium online entertainment company that is redefining the future of human interaction and reshaping digital relationships through innovative technology.

Strategic Investment
Byborg has agreed to purchase (directly or through an affiliate) 14.9 million newly issued, unregistered shares of common stock of PLBY Group for a price of $1.50 per share, for a total purchase price of $22.35 million. The parties expect to close the purchase and sale of the shares on or before November 8, 2024.

Licensing Agreement
Concurrently, Byborg and PLBY Group signed a non-binding letter of intent (“LOI”) providing that the parties will work together on an exclusive basis to negotiate and execute a definitive agreement pursuant to which Byborg would license certain Playboy digital intellectual property and operate certain Playboy digital businesses. Core to the contemplated strategic partnership is pursuing additional new revenue streams, including artificial intelligence services, webcam products and other initiatives which will leverage existing Byborg intellectual property. The LOI includes $20 million in annual minimum guaranteed payments to PLBY Group over the initial 15-year term for a total of $300 million as well as a profit share based on performance. PLBY Group and Byborg expect to enter into definitive agreements prior to year-end.

Ben Kohn, Chief Executive Officer of PLBY Group commented, “Our strategic relationship will combine the rich heritage of the Playboy brand with one of the best premium online entertainment companies in the market. I am most excited about the new products Byborg has developed and how the Playboy brand can bring those to mass audiences. The proposed transaction also represents one of the most significant steps to date in our transition to an asset light business model.”

“Playboy is one of the most iconic lifestyle brands recognized worldwide, resonating across generations,” said Andras Somkuti, Managing Director of Byborg Enterprises SA. “Investing in PLBY Group and collaborating to enhance the brand and its assets for greater reach presents an exciting opportunity for us. We see tremendous potential to grow existing businesses, develop innovative products, create captivating experiences, and drive substantial growth.”

The shares will be subject to a lock-up period of one year. In connection with the equity purchase commitment and the licensing agreement, Byborg may purchase additional shares of common stock and has entered into a standstill agreement capping its total holdings in PLBY Group at 29.99%. As a result of the equity purchase, beginning in 2025, PLBY Group will appoint a director nominated by Byborg and will also add a mutually agreed new independent director.

Additional details about the transactions will be included in a Form 8-K to be filed with the Securities and Exchange Commission.

About Byborg Enterprises SA
Headquartered in Luxembourg, Byborg Enterprises SA is a privately held premium online entertainment company that is redefining the future of human interaction and reshaping digital relationships through innovative technology. Founded with a global mindset, the company aims to reach every corner of the world. With over 70 million daily visitors engaging with their streaming and technology products, Byborg Enterprises SA facilitates seamless interaction among people 24/7. More information is available at https://www.byborgenterprises.com/.

You May Also Be Interested In

• LivePerson adjourns stockholder vote on SoundHound AI merger to Sept. 2
• Richardson Electronics to deliver 18 battery storage systems in Alaska
• Invesco cuts fees 20% amid redemption backlog in real estate fund - Bloomberg