You’d think that a company trying to raise several hundred million with an initial public offering of stock would tell their affiliates to be on their best behavior for a while.
For example, maybe they’d discourage them from hacking government web sites to attract search engine hits on the word “bestiality,” then redirect browsers to the company’s site.
Remember Adult Friend Finder? Penthouse Media Group (which also owns Penthouse magazine) purchased the online adult… ah… dating service in 2007 for $500 million. Well now they’re called FriendFinder Networks, Inc. In December, 2008 they filed with the U.S. Security and Exchange Commission for permission to make an initial public offering $460 million of stock.
That timing wasn’t too good given the near collapse of the global economy back then, so last month they amended their IPO filing in hopes of raising $220 million. Lead underwriters are Renaissance Capital and Ledgemont Capital Markets LLC. Co-managers are Merriman Curhan Ford and Lighthouse Financial.
In 2007 AdultFriendFinder.com settle an enforcement action by the Federal Trade Commission that charged that their explicit online pop-up ads violated federal law. The settlement bared them from “displaying sexually explicit online ads to consumers who are not seeking out sexually explicit content.” (Story here.)
Thanks Eric Howes.