Confirmed: Penthouse Buys AdultFriendFinder For $500 Million

[buzzsaw]

As first reported by TechCrunch November 17, the acquisition by Penthouse of Palo Alto based Various, Inc., the owner of AdultFriendFinder has been confirmed.According to a NY Times report, the buying price was $500 million. Penthouse CEO Marc Bell said that Penthouse’s goal was to provide consumers, particularly 18-to-34-year-old men, with a wide variety of [...]

More... (http://feeds.feedburner.com/~r/Techcrunch/~3/199014724/)

[gonzo]

As first reported by TechCrunch November 17, the acquisition by Penthouse of Palo Alto based Various, Inc., the owner of AdultFriendFinder has been confirmed.According to a NY Times report, the buying price was $500 million. Penthouse CEO Marc Bell said that Penthouse’s goal was to provide consumers, particularly 18-to-34-year-old men, with a wide variety of [...]

More... (http://feeds.feedburner.com/~r/Techcrunch/~3/199014724/)


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"There is no deal, currently," Lars Mapstead, co-owner and vice president of marketing for AdultFriendFinder, told AVN Online (http://www.avnonline.com/).
TechCrunch reported that the company may have been purchased for $1 billion, later reducing that figure to $500 million.
"They are just rumors," Various founder Andrew Conru told AVN Online. "Over the last couple of years, we have been talking with a number of possible investors, as well as investigating a possible public offering - lots of interesting things.

Both of you lying thieving scamming fucks can officially eat me raw... balls and all.

You lied about stealing my traffic. You lied about Zango and you lied about this deal!

[JenniDahling]

Andrew did say he wants to retire by age 40 and his bday is coming up in early Feb.

[DragonKing]

5 mill is retirement

500 mill is world domination

[RawAlex]

Anyone want to take bets on the AFF payouts dropping to $25 per member soon?

[Greg B]

$500 million is waaaaaaaayyyyyy the fuck out of line for that service. For piss money and a bunch of sharp webmasters Penthouse could have started their own form of a dating/meeting program and kicked royal ass.

This is about laziness and other things that look too uncool.

$500 million????

That's got to be an error.

[RawAlex]

Perhaps they are going to pair it up with a chinese laundry service. I hear that is a pairing that can be very profitable.

[EmporerEJ]

Perhaps they are going to pair it up with a chinese laundry service. I hear that is a pairing that can be very profitable.

How about they pair it up with my machine, and cut me a check for 2-fitty?

[Rcourt64]

if this is true? Will the accusations and reputation reform itself for this site?
What Greg B says is so true about Penthouse easily affording to start they're own thing.

[DragonKing]

if this is true? Will the accusations and reputation reform itself for this site?
What Greg B says is so true about Penthouse easily affording to start they're own thing.


I disagree to an extent. So does AOL, Google and alot of other companies that bought out start ups. They are buying member base, branding and probaly merchant accounts.
Was ICQ worth 16 million or whaver they bought it for back then? Then I'd say no. Have you seen ICQ lately? Bet they've (aol) made that investment back twice already.

I'm very excited to see though how Penthouse is going to deal with Zango and Adware and shit that AFF has come to be known as associating with.

[EmporerEJ]

Well, it sure seems like a done deal.

http://www.ynot.com/modules.php?op=modload&name=News&file=news_article&sid=41962&thold=0&mode=0&order=0

Kathee doesn't get these things wrong.

[tony404]

The thing to see is how much of that is cash.

[Toby]

You will see more changes on the Penthouse side. The AFF staff will be managing all of the Penthouse properties. We will be managing all of their affiliate programs and working with them to convert better. So, basically, FriendFinder is going to be the online technology group for Penthouse.
Guess who just got added to my banned sponsor list. :rolleyes:

[RawAlex]

Toby, that interview is key for some other reasons as well. In a sense, it shows that the 500 or 300 million number isn't exactly all it is cracked up to be.

Conru and Lars will be maintaining sizable holdings in the "new" company. So they may have traded 100% of AFF for 50% of Penthouse. In theory, they were bought out for X, but the actual money trading hands maybe significantly lower (like, perhaps, not all that much).

The other question is Penthouse... I see a penthouse international as a Pink Sheet stock. Is this the new owner? Or is that the previous (mostly dead) branch of Penthouse?

[gonzo]

Toby, that interview is key for some other reasons as well. In a sense, it shows that the 500 or 300 million number isn't exactly all it is cracked up to be.

Conru and Lars will be maintaining sizable holdings in the "new" company. So they may have traded 100% of AFF for 50% of Penthouse. In theory, they were bought out for X, but the actual money trading hands maybe significantly lower (like, perhaps, not all that much).

The other question is Penthouse... I see a penthouse international as a Pink Sheet stock. Is this the new owner? Or is that the previous (mostly dead) branch of Penthouse?
300 of the 500 was only cash. Leave 200 on the table. YOu guys can figure it out.

[RawAlex]

I just got an email from them on this subject (broadcast, I am sure). They make me laugh though:

We finalized the deal, and as a valued affiliate of Various Inc., you are among the first to know of this major event. A detailed press release was sent to the media yesterday evening.


So I am a valued affiliate amoungst the first to know after the media who has turned around and already informed everyone.

I feel special!

[EmporerEJ]

The thing to see is how much of that is cash.

More importantly, let's see what Uncle Sam does with it.

[EmporerEJ]

<<<SMACK>>>>

(That would be shoe number 2)
Now, what do you make of the timing of this???



Various Inc. Settles FTC Charges
Unsuspecting consumers reportedly hit with sexually explicit pop-ups.


Various Inc., which operates online sex and swinger communities Adult FriendFinder and Cams, has agreed to settle Federal Trade Commission charges that its online pop-up ads violated federal law.
The settlement bars Various from exhibiting sexually explicit ads to surfers who are not seeking adult material..........

http://www.avn.com/index.cfm?objectid=B70DE754-AAD2-5F81-132E6C845CEACDD0

[RawAlex]

<<<SMACK>>>>

(That would be shoe number 2)
Now, what do you make of the timing of this???



Various Inc. Settles FTC Charges
Unsuspecting consumers reportedly hit with sexually explicit pop-ups.


Various Inc., which operates online sex and swinger communities Adult FriendFinder and Cams, has agreed to settle Federal Trade Commission charges that its online pop-up ads violated federal law.
The settlement bars Various from exhibiting sexually explicit ads to surfers who are not seeking adult material..........

http://www.avn.com/index.cfm?objectid=B70DE754-AAD2-5F81-132E6C845CEACDD0

I don't think you have to be too intelligent to figure that settling this out was one of the requirements before a deal would go forward. It is only unfortunate that once again it appears that the FTC issued another toothless ruling that allows the guilty to keep their ill gotten gains, without addressing the issues of how this affected things like their affiliate agrrements and such.