Playboy Iconix Deal off the Table?

Stock watcher Streetinsider.com reports that Playboy Enterprises stock is falling today on reports that Iconix Brands is breaking off talks about buying the company. As of a little after 9:00 am Pacific time this morning, Playboy's stock is down 12.73% to $3.35.

Playboy in Talks for Sale to Iconix Brand Group

Iconix Brand Group, the owner of London Fog and Candie's and Joe Boxer clothing lines, is reportedly in talks with Playboy Enterprises about buying the 56-year old media and entertainment group. Bloomberg says Iconix is examining Playboy's finances, though neither company is commenting.

Playboy's stock surged today; Iconix's dipped slightly, according to Crain's. There still might well not be a deal, but if it goes through, it would be an interesting matchup, with a new owner that really knows brand exploitation and that can do some good cross-promotion among its brands. (When was the last time you saw a London Fog ad in Playboy?)

Nor is it clear what role would be played by founder Hugh Hefner, who still owns the vast majority of Playboy shares.