The merger was announced this afternoon, and encompasses production and distribution, as well cross-platform online content and delivery systems that stretch across several countries and continents.
"Raging Stallion will continue to operate the same way it always has," said AEBN principal Scott Coffman. "It's a valuable and profitable production house. But we hope they can also advise us in both the gay and straight markets to help us help our valued partners increase their own production capabilities and expand their reach."
NakedSword president Tim Valenti said the merger will increase its reach and "our ability to assist in production and our expanded promotional opportunity will keep our partner studios prosperous while the economy rebounds."
Terms of the merger were not revealed at post time.
The freshly struck deal would appear to be the inevitable result of several years of mergers and acquisitions enacted by both companies.
Last year, Raging Stallion purchased Eastern European production label High Octane, and has partnered with Australian content provider Pistol Media since 2005 on a wide variety of niche sites including HairyBoyz.com, FistingCentral.com and SexGaymes.tv.
Raging Stallion recently earned several XBIZ Awards, including GLBT Film of the Year for "To the Last Man 1-2," while AEBN earned a trophy for VOD Company of the Year.