PLAYBOY ENTERTAINMENT TO ACQUIRE FULL OWNERSHIP OF UK CHANNEL
Chicago - Playboy Enterprises Inc. today announced that Home Video Channel Ltd. is acquiring the 81% interest in Playboy TV UK/Benelux, currently held by the Flextech Group and British Sky Broadcasting Limited.
Home Video Channel is a British subsidiary of Spice Entertainment Companies, Inc., which Playboy is in the process of acquiring.
Playboy said that Home Video Channel will pay approximately U.S dollars 9 million for the 81% interest and that timing of the payments will be based on the network's future cash flows.
Playboy TV and HVC will continue to be delivered on Sky's satellite platform as well as via cable.
Playboy Entertainment Group President Anthony J. Lynn said: "Our international Playboy TV networks offer us enormous opportunities for growth. We have seen the success of Playboy TV in the United States and the profit and margin potential that accrues once the network reaches breakeven. While we look forward to continuing our relationship with Flextech and BSkyB, this acquisition will give us a valuable asset that will be of increasing importance to us going forward. With the pending acquisition of Spice, we plan to offer Playboy TV and a complementary movie service combining HVC and Spice. The economies of scale that the merger offers, combined with the ability to market attractive options to consumers, should improve our growth and profitability potential."
The acquisition is dependent on the successful completion of Playboy's purchase of Spice, which is expected to occur within the next 90 days. The registration statement regarding Playboy's proposed purchase of Spice was effective today and a Spice stockholders' meeting has been set for December 30 1998.
Playboy Enterprises, Inc. is an international multimedia entertainment company that publishes editions of Playboy magazine around the globe, creates programming for Playboy TV networks and home video distribution around the world, operates a direct marketing business, including Critics' Choice Video, Collectors' Choice Music, Playboy and Spice catalogs and Web sites, markets Playboy-branded consumer products sold worldwide, operates Playboy Online, which includes the Playboy.com and Playboy Cyber Club Web sites, and plans to open the Playboy Casino & Beach Hotel on the Greek island of Rhodes.
SOURCE Spice Entertainment Companies
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