Earlier we reported that James Holmes, the Aurora, Colardo movie theater shooter, had a disturbing profile on AdultFriendFinder. He was on the website looking for a one-night stand in the days before the “Dark Knight” shooting. He was rejected three times through the website. His profile has been removed by AdultFriendFinder administrators since then. He had reached out to multiple women in the weeks leading to the attack and was rejected by all 3.
FriendFinder, the Internet company behind Cams.com, Adult FriendFinder, FriendFinder.com, AsiaFriendFinder, ItalianFriendFinder, KoreanFriendFinder, SeniorFriendFinder etc. is considering an IPO again. The company has filed an amendment to the Form S-1 with the SEC.
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FriendFinder Networks Inc., a subsidiary of Penthouse Magazine has raised $551 million in funding. FriendFinder CEO Marc Bell said that they are preparing to launch 3 big initiatives. “We’re always looking to raise capital to grow the business,” stated Bell in an interview.
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Natalie Cedeno is a former Director of HR at Penthouse Internet slash Various, Inc. slash FriendFinder Networks. Penthouse acquired Various Inc. (parent company of FriendFinder) for $500 million around December 2007.
“Natalie is one of the best HR managers I have worked with. She is a true professional and is always there to assist and guide staff through any situation. Natalie possesses strong organizational skills and a deep knowledge of many other areas including leadership/executive level coaching, facilities management, payroll and office operations,” stated Mike Rogers a colleague of Cedeno, on her LinkedIn profile as a testimonial of her work. “I would recommend Natalie to any organization looking to hire a seasoned HR manager and would gladly work with her again.”
It sounds like Cedeno was a good employee, but it appears that FriendFinder pushed the wrong buttons. She has been fired since then and she is taking FriendFinder to court over labor laws. Here is the full story.
Cedeno claims that FriendFinder withheld two years of pay that she was owed under her contract unless she stayed silent about FriendFinder’s violations. Cedeno’s lawyers believed this is a case of extortion. Cedeno filed the claim under the Equal Employment Opportunity Commission and California’s Department of Fair Employment and Housing.
Both FriendFinder Networks and Penthouse Media Group are adult entertainment companies. As a token of appreciation to the FriendFinder, Penthouse sent a few Penthouse Pets to the California offices from Florida where Cedeno worked.
When one female employee complained about the Penthouse Pets coming to the FriendFinder officers, executives had the Pets humiliate the employee. “They came into her office and placed her breasts on her head in an attempt to humiliate her, and they had someone ready to take pictures,” stated Cedeno. The employee quit one month after.
Valleywag points out that if Cedeno wins the law suit, it could affect the IPO that FriendFinder was planning. And if FriendFinder’s executives are penalized financially, the company may have a hard time paying off the $420 million in debt that they currently have.
There are a plethora of other problems that the company has right now. This includes the recent firing of the company’s sales department, the COO hating on the operations team, and a former controller planning to file an age-discrimination lawsuit. Its just one big mess.
What are your thoughts? Leave a comment.
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: