from www.forbes.com – Iconic magazine founder Hugh Hefner won the bidding war to take Playboy Enterprises private on Monday, being forced to offer $6.15 per share to value the company at $207 million.

While Hefner is Playboy Enterprises ( PLA – news – people )’ largest shareholder, with 70% of the company’s voting stock and 28% of the non-voting stock, he had to battle an opposing bid by FriendFinder Networks, owner of rival adult publication Penthouse and various online websites. The deal announced Monday is richer than the $5.50 per share Hefner offered in July.

Playboy will be “returning to its roots as a private company” according to Hefner, who founded the company in 1953. The international company was taken public in 1971. Hefner has long been the face of the brand, appearing on various shows such as The Girls Next Door, featuring Playboy bunnies Holly Madison, Kendra Wilkinson, and Bridget Marquardt. The show ran on E! Entertainment, a cable network Comcast ( CMCSA – news – people ) purchased from The Walt Disney Company ( DIS – news – people ) in 2006. While its branding and influence have grown, Playboy has faced the dual problems of shrinking circulation and competition from online platforms, many of them free.

The deal will not affect the current corporate or editorial structure, as CEO Scott Flanders will retain his position, while Hefner will continue to execute editorial control. Flanders, who seeks to “transform Playboy into a brand management company,” believes the transaction will strengthen the company’s balance sheet while “streamlining operations.”

Print media has been hurting, with circulation falling across the board. In 2010, online ad revenues exceeded print for the first time, reaching $25.8 billion. In the last quarter, The New York Times ( NYT – news – people )and The McClatchy Company ( MNI – news – people ), two of the largest newspaper publishers, reported falling revenues. Playboy also had a hard year; monthly circulation fell to 1.5 million in 2010, down from just over 2 million in 2009 and a far cry from the 1970s peak of better than 7 million.

The company has sought to diversify its products through the years through deals that make use of the Playboy brand and famous bunny logo on everything from lingerie to hotels, as well as television series and films.

Playboy shares rallied on the take-private announcement Monday, jumping 17% to $6.09 by midday.