Just a month after pay-per-view porn firm New Frontier mysteriously ousted its own CEO, the adult entertainment provider has been purchased by Hustler magazine founder, Larry Flynt.
The deal makes Flynt one of the largest consolidated players in the adult entertainment business, owning both the content production side and the TV distribution channels.
Manwin Holding, which owns Playboy's digital and entertainment assets, including Playboy TV, offered $24.3 million for the fledgling New Frontier, but the company held out and it paid off — Larry Flynt Productions ended up purchasing the company for $33 million cash, despite New Frontier being chronically unprofitable.
While New Frontier's TV programming services include Penthouse TV and subscription websites, Flynt Productions currently owns TV networks, magazines, web sites, nightclubs and a casino.
"The acquisition of New Frontier Media fits perfectly with our strategic plan for the growth of our company," said LFP president Michael Klein. "The addition of these assets to our portfolio strengthens us significantly moving forward."
Flynt sealed the deal by offering "$2.02 per New Frontier share in the deal that would take the company private. Investors could get some additional money depending on how much cash the firm has when the deal closes," according to The Hollywood Reporter.
The acquisition, which is expected to close by year's end, comes just a month after New Frontier CEO Michael Weiner's dismissal.
New Frontier had also received unsolicited buyout offers over the past several months, including one from shareholder Longkloof Ltd. New Frontier recently fired CEO Michael Weiner, and its board pressured a member to resign over suspicions he and Weiner were allied with Longkloof, reports AP, which the board member denied.
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