This just in (um, no pun intended). Various, Inc., the parent company of AdultFriendFinder and its vast network of over 25 online personals-related sites, has just been purchased by the Penthouse Media Group.
Michael Arrington of TechCrunch reports that AdultFriendFinder is rumored to make over $300 million annually. Its acquisition price is supposedly anywhere from $500 million to $3 billion. His sources say it’s closer to $500M though.
Since $500M for a $300M business is surprisingly low, I’m guessing the expenses of running a business like AdultFriendFinder are fairly high. Their net profits may be about half of that—say, $166M if you assume the $500M is 3x the profit? Or maybe even less?
AdultFriendFinder supposedly has one of the more profitable affiliate programs out there, which you could use to monetize your blog if personals ads compliment your content. Many a web entrepreneur has made a pretty dime off selling sex. And no, I haven’t.
But that’s not why I wrote about this. Nor did I really care to write about the acquisition (cool news as it is to Various, Inc). Really, I just saw an opportunity to use the title “Sex Sells.” Hehehe…