Publication Company, Penthouse Media Group Is Paying $500 Mill For The Procurement Of Various, Inc. (Parent Company of AdultFriendFinder).
Penthouse magazine was started Bob Guccione in 1965.Â The publication company competes directly against the Hustler, Playboy, and Maxim.Â Penthouse’s parent company is Penthouse Media Group (formerly known as General Media Inc.).Â And Penthouse Media Group’s former parent company was Penthouse International Inc., but is no longer the case because of a chapter 11 restructure.
The publication company enabled Guccione to be considered at one point one of the richest men in the U.S., worth $400 million in 1982.Â General Media Inc. became Penthouse’s parent company in 1993 when the company went public through an $85 million U.S. SEC registered bond offering.Â Jefferies and Co. led the junk bond offering.Â The primary bond buyer was MacKay Shields, a division of the New York Life insurance.
Then in 1997, Cerebus Capital Management (the hedge fund company that bought Chrysler for $7.4 billion) started buying General Media Bonds in the open market.Â And Penthouse sold some of its automotive publications to Peterson Automotive for $33 million.Â In 2003, General Media filed for Chapter 11 bankruptcy protection.
In 2004, General Media came out of bankruptcy with the help of three investors who are now the owners:
1.) Marc . Bell, a South Florida real estate developer and founder of Globix Corporation.
2.) Daniel Staton, former COO and EVP of DFluke Realty Investments Inc. and President of Walnut Capital Partners.
3.) Florian Humm, a German hedge fund manager
Penthouse’s Acquisition Investment for Various Inc.
â€œFor now, we are holding on to everything,â€ stated Bell.Â The NY Times said that the goal was to give their demographic consumers of 18-34 year old men a wider variety of their content.Â â€œThe rationale here is, itâ€™s an online world.â€
Penthouse is taking $500 million and investing into the acquisition of Various Inc.Â Various Inc. owns 25+ social networking sites and has a total member base of 260 million consumers.Â About 1.2 million of them are paid subscribers.Â The combined revenue for Various Inc. and Penthouse is expected to be $340 million in 2007.Â Various Inc. owns: