BOCA RATON, FL — Penthouse Media Group Inc., parent company of Penthouse Magazine, has acquired internet social-networking giant Various Inc. and its subsidiaries for $500 million in cash and securities. The companies’ projected combined revenue for 2007 is $340 million, making Penthouse among the largest adult-entertainment companies in the world.Palo Alto, CA-based Various’ FriendFinder Network Inc. boasts an extensive affiliate network in adult and mainstream, as well as a rapidly growing member base of more than 260 million consumers and a total paid subscriber list in excess of 1.2 million. The company operates more than 25 online communities including AdultFriendFinder.com, a highly trafficked website claiming more than 18 million members.
Various also is the parent company of Streamray Inc., which includes the video-chat site Cams.com.
“We are very excited to welcome Various and its employees as a part of the Penthouse family,” said Penthouse Media Group Chief Executive Officer Marc H. Bell. “Various is an attractive addition to our already strong print platform, and one that puts Penthouse in a very robust position in the ever-growing online social-networking arena. We like where the business combination puts us and that this transaction will enhance PMGI’s current and future licensing, print and interactive ventures.”
According to Various Vice President of Marketing Lars Mapstead, “We are excited to be combining our substantial internet presence with one of the most recognized adult entertainment brands in the world. Together we will expand in many areas, both online and offline, to solidify our position as the world leader in adult entertainment.”
The transaction is the latest step in Penthouse’s expansion march. The company previously acquired Danni.com and the Jill Kelly Productions library in separate 2006 transactions. Penthouse is continuing its acquisition program as it continues to consolidate a significant portion of the industry into one global brand, according to Bell.
