BAY AREA — with what is likely to be a record when you look at the adult-entertainment industry, Penthouse magazine’s writer says it paid $500 million for a Silicon Valley business operating one of the largest intimately oriented social-networking web sites.
The deal launched Wednesday for Palo o-based different adds AdultFriendFinder to Penthouse’s portfolio since it grows further inside fast-growing industry of social networking sites brought by MySpace and Facebook.
„this is where money was,“ stated Marc Bell, CEO of Penthouse Media people.
The deal will come because the $13 billion adult-entertainment markets changes a lot more info on the internet amid climbing competitors and a leap in purchases and leases of X-rated DVDs and related fare.
Penthouse hopes to thrive by gobbling up as many adult-focused businesses that you can, Bell mentioned, with an eye toward getting Penthouse people. He/she and his partner, Daniel Staton, bought Penthouse in 2004 in a bankruptcy court reorganization.
Professionals regarding the mature industry stated they might maybe not remember a great deal bigger than one established Wednesday. „probably, it is accurate documentation,“ states Frederick way, composer of Obscene income: The advertisers of Pornography when you look at the Cyber Age. „it surely underscores the change from conventional mass media to newer mass media.“
With assorted, Penthouse says it’ll have money of $340 million this present year, which makes it the whole world’s biggest adult-entertainment business. Lane said the deal was a further test to Playboy corporations, plawhich Hugh Hefner created in 1953.
Playboy stated it’s not concerned with the Penthouse price since the organizations can be found in various areas.
Now led by Hefner’s child, President Christie Hefner, Playboy keeps varied into non-sexual people like household products as humdrum as shower drapes, and PlayboyU, an innovative new myspace and facebook for students. That webpages doesn’t have nudity, spokeswoman Martha Lindeman says. Playboy reported $330 million in money and $2.3 million in profits for 2006.
Different was launched in 1996 by Andrew Conru, a business owner with a doctorate in mechanized engineering concept from Stanford college. It has about 300 employees and more than 25 social networks, like non-sexual online dating sites for Spanish speakers, seniors and for Christians.
AdultFriendFinder says it’s the greatest „gender and swinger personals area.“ It says 260 million registered users and most 1.2 million monthly customers. AdultFriendFinder website subscribers spend doing $50 four weeks.
Last week, different settled a government Trade Commission issue so it „foisted intimately direct online pop-up advertising on unwitting buyers,“ the FTC said. Different would not declare breaking national law. They decided to provide such advertising only to customers looking for all of them or agreeing to review them, the service said.
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