Aquired for $ 1 billion

Rumors in the past few months have suggested that AFF sold for around $500 million to penthouse.      Looks like the latest rumor  says its gone for a Billion.    Revenues are around 200 to $300 million as reported in the media  but I bet a much of that is coming from their  web cams sites and not adult dating.

http://www.techcrunch.com/2007/11/17/whoa-adult-friendfinder-may-have-been-acquired-for-1-billion/

13 Responses to “Aquired for $ 1 billion”

  1. Mayo Says:

    That is rather low for a site of that size and revenue, there must be a catch.

  2. Jack Says:

    It’s not true.

    http://valleywag.com/tech/andrew-conru/adult-friendfinder-sale-sweet-if-it-were-true-324029.php

  3. bobby dassler Says:

    Hey Markus, 2.5 to 3 times annual earnings seems to be about the price of most of these types of deals. So I guess that means your holding out for around $25 to $30 mln? Lets do the deal one of these days ok? :)

    cheers and continued success to all at plenty!
    John

  4. Karen Says:

    Hello Marcus, My name is Karen.

    Please contact me at the above email address. It is regarding online dating.

    Feel free to delete this post after you read it.

    Thanks :)

    Karen.

    p.s. this is not spam, I have a viable question, but cannot find a way to contact you.

  5. Markus Says:

    Valuations are based on profits more than raw Revenue numbers which means nothing if the business is losing money. Porn/adult is valued at 3 times and other sites have a multipul of 20. I’d sooner take the company public than sell.

  6. Jeff Shaughnessy Says:

    Hi Markus, I would like to meet with you about a potential partnership with me and my partner (Jerome Pathon). We are looking to create some targeted online communities and see you as a guru. Jerome has spent the last 9 years in the NFL with Indianapolis Colts, New Orleans Saints and the Atlanta Falcons. I have been involved with Online Marketing for nearly 10 years. Please contact me by email: jeffshaughnessy@rogers.blackberry.com

  7. Mayo Says:

    Wikipedia:
    “In August 2005, PET Capital Partners completed a financing with each of Post Advisory, Canyon Capital, and Satellite for $40 million. According to SEC-filed documents dated August 31, 2005, signed by Marc Bell as President, Jefferies and Company represented Penthouse in the private placement of new debt. According to the filing, payments were made to directors and officers of $14,502,901 and “payments to others” were $11,710,965.38, leaving the company with working capital of $11,441,218.59.”

    Something is fishy…

  8. Michael Gravel Says:

    Our firm has represented many dating sites over the years. I would suggest the bulk of AFF’s revenue comes from subscriptions from its slew of sites in the adult space. Friendfinder as a dating site would command 4-6 times its EBITDA with the possibility of more. However, since AFF is porn related many companies with the available cash to buy Andrew’s business would not because of concerns of image of owning such a business. Which leaves a hedge fund to pick up the business as a value play and earn a nice annuity off a reported $150 million plus EBIDTA of which 3x would must likely be the paid price. Andrew may not sell out for what he could likely earn with continued growth in less than 36 months.

  9. John Davis Says:

    Markus, let me know if and when you ready to explore taking the cash off the table in a public deal!

    Kind regards,
    John

  10. Who Cares that AFF Might be Sold… « Goings On at Bondage.com Says:

    [...] Cares that AFF Might be Sold… Markus Frind, founder and CEO of [...]

  11. globalstay Says:

    a job little then eventually often I noticed trees I started crashing down they had accomplish done it.

  12. adult onine dating Says:

    adult onine dating…

    I have too many favorites. I can’ t pick one all time favorite. As a child I kept rechecking out the different colors of fairy books- “ The Red Fairy” book etc. As an adult my favorites are even harder to pick. “ Good Omens” by Neil Gaiman an…

  13. Tom lee Says:

    Markus, if you ever would contenplate (hope never) to sell your site POF, what would you charge for it?

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