Playboy expands TV empire

The Playboy Bunny will visit 36 million more US households

The company that created the Playboy Bunny has taken one more step beyond magazine publishing by agreeing to acquire three erotic television networks.

Playboy Enterprises' share price shot up 12% after the company announced the deal would expand its television reach by more than 36 million households in the US.

The acquisitions of the networks and related assets cost the company about $70m.

Playboy will pay $41.7m for Vivid TV which is owned by VOD, and $28.3m for The Hot Network and The Hot Zone which are owned by Spice Entertainment Companies.

The latter deal was done by exercising an existing option.

The payments will be made in cash or as shares over the next decade.

The acquisitions which are expected to be finalised this month are part of Playboy's strategy of growing it US television network.