PLBY Group, Inc. announced a strategic partnership with Byborg Enterprises SA on October 31, 2024. Byborg agreed to purchase 14.9 million newly issued, unregistered shares of common stock at $1.50 per share, totaling $22.35 million, with the closing expected by November 8, 2024.
Concurrently, a non-binding Letter of Intent (LOI) was signed for Byborg to license certain Playboy digital intellectual property and operate select Playboy digital businesses. This agreement includes $20 million in annual minimum guaranteed payments to PLBY Group over an initial 15-year term, totaling $300 million, along with a profit share based on performance.
This partnership represents a significant step in PLBY Group's transition to an asset-light business model, converting a capital-intensive segment into a high-margin licensing stream. The collaboration aims to leverage Byborg's expertise in premium online entertainment to pursue new revenue streams, including artificial intelligence services and webcam products.
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