Penthouse Acquires Adult Dating Site 'Various'; Deal Worth $500 Million

Penthouse plus sex matchmaking equals big money. Some call it porn. Other subjective viewers deem it adult social networking. Dispute aside, it looks like nude advertising is here to stay. A record-breaking dollar deal in the adult entertainment industry makes history on December 12.

Penthouse recently announced the purchase of California-based Various for the sum of $500 million in cash and securities.

Various, a company famous for the AdultfFriendfFinder.com network, nude ads and other sex matchmaking sites, began with a relative whimper in 1996. The salacious Various network was founded by Andrew Conru, who holds a doctorate degree in Mechanical Engineering Design from Stanford, reports USA Today.

In the spirit of diversity, Various owns a number of adult dating sites from alternative lifestyles to Christian and senior dating. Though few are complaining about ad pop-ups on the latter two groups.

Both Various and Penthouse have experienced their share of legal woes, criticisms and victories. Penthouse went bankrupt in 2004, due in large part to online competition and free adult social networking, but also porn piracy.

Various won a FTC victory recently despite complaints that its R-rated ads have invaded many a web site visitor including children and religious groups.

Various claims the ads are only served as requested, but anyone with a marginal affiliate background knows it's up to the individual web site owners and management to serve these adult ads responsibly.

According to USA Today, Penthouse expects to earn revenues of $340 million in its first year with Various on its team. Given that its projection is based on enthusiastic affiliates and consumer demand, the projection is modest. Porn and adult entertainment reigns in several billion annually.

While many affiliate marketing campaigns exist, sex sells for web site owners too. Affiliates may earn income via sign-ups, paid memberships or clicks, and the payout is often better than the likes of Goggle AdSense for the right niches.

For some perspective, consider the multi-culture market Various reaches in the adult sex and dating arena, sites and co-branded networks include: ALT.com, Adult FriendFinder, Amigos.com, Asia FriendFinder, Big Church, Bondage.com, Breakthru.com, Cams.com, Dine.com, Filipino FriendFinder, French FriendFinder, FriendFinder, Gay FriendFinder, German FriendFinder, GradFinder.com, GuanXi, Indian FriendFinder, Italian FriendFinder, Jewish FriendFinder, Korean FriendFinder, LesbianPersonals.com, MillionaireMate.com, NiceCards.com, OutPersonals.com, Passion.com, Senior FriendFinder, ShareRent.com, Slim.com

Don't let the word "friend" fool you, most of these sites are not platonic.Though not all Various properties are R or X-rated.

The future of adult social networking will continue to upset some and make money for others. The biggest issue is in keeping porn, or naked singles and swingers, out of the hands of minors. Secondly, to keep ads away from the average web surfer who is completely disinterested or offended.

With Penthouse running the adult dating show more lawsuits are likely as is an increased responsibility in the market for delivering adult dating and sex ads to consenting adults only.

One thing is clear, within a few years Penthouse may have acquired more friends than Tom on MySpace due to this lucrative deal.

Penthouse is a division of Penthouse Media Group Inc.,
Various is Various Inc.

Sources:
Press Release: http://www.prweb.com/releases/2007/12/prweb576293.htm
'Penthouse' makes $500M hookup with social site Various, USA Today
(http://www.usatoday.com/tech/techinvestor/corporatenews/2007-12-12-penthouse_N.htm)
Adult Friend Finder Corporate http://www.friendfinderinc.com/