Quote:
Originally Posted by EmporerEJ
Wow.....That's not the history I remember, from so short a time ago. All of those companies were in trouble before Penthouse latched onto them and drug them the rest of the way.....
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All of which companies were in trouble before Penthouse bought them? AFF and ibill?
If you think that then your memory fails you.
Ibill was sold to InterCept, who for what ever reason claimed it didn't realize that ibill did mostly adult transactions so they dumped it. It might not have been run great but it was still running and very profitable when Penthouse bought it in March 2004. While Penthouse was in charge they lost their ability to process Visa and by October 2004 they failed to secure another bank to do the processing for visa. Penthouse fucked up ibill big time.
AFF has always been a profitable business and still is. What is killing FFN now is all of the debt they paid to buy AFF and that Penthouse loses so much money. On it's own AFF still profits, and with some inteligent people running it and keeping them out of retarded lawsuits like (facebookofsex) AFF would be even more profitable.
Penthouse was in trouble a long time ago, they filed bankruptcy in 2003. Magizine sales have dropped like a rock the last 10+ years. Penthouse would be a foot note in history now if they haven't been leaching off of profitable companies like ibill and AFF to keep them a float. Sounds like this time they will finally sink and wont have any other suckers to latch onto. Think about it, they bought Ibill from InterCept which was ready to give it away once their investors found out it was processing all porn. Andrew wanted to get rid of AFF terribly bad and counldn't find anyone so Penthouse was his only option. In both cases the original owner just wanted out, not because the company wasn't doing well but because they didn't want to be involved with adult any more. In walks Penthouse to plunder.... I doubt Penthouse will get so lucky again.