Friend Finder Networks

History

FriendFinder was launched in 1996 by Andrew Conru and Lars Mapstead. After discovering that users had been using the service to seek sexual partners, he launched Adult FriendFinder as a spin-off, followed later by other spin-offs dealing with different regions and niches. Much of the company's growth without investment capital has been attributed to its affiliate program, with more than 500,000 affiliates to date.

In 2007, Penthouse Media Group purchased FriendFinder's parent company, Various, Inc., for $500 million. Penthouse later changed its name to FriendFinder Networks.

In 2008, the company filed for a $460 million initial public offering. Most of the money generated was to pay down $420.1 million in short-term debt and other obligations.

As of January 17, 2010, FriendFinder Networks had a negative net worth equal to $118 million, $32 million in cash on hand and $650 million in liabilities. The company had also indicated that it lacked existing cash or cash from operations to repay a $44.5 million debt that was due July 31. It has cautioned that, unless it can repay or restructure its obligation, it will face “a material deficiency in our short term liquidity.” With these shortfalls in mind, the company again announced an intention to make an initial public offering of stock, representing a 49% stake in the company, with plans to use the proceeds to pay down its debt and become listed on the New York Stock Exchange. The contemplated public offering, scheduled to reach the market on January 27, 2010 was delayed by FFN. On February 5, 2010, FFN announced its intention to indefinitely delay its contemplated IPO until market conditions improve.

In June 2010, FriendFinder Networks made a $210 million bid to acquire Playboy Enterprises. Hugh Hefner, who owned 70 percent of the voting stock, did not want to sell.