Home > News > LFP Plans to Acquire New Frontier Media in $33M Deal • Bookmark   • Newsletters   • Register Search Options

NEWS STORY

LFP Plans to Acquire New Frontier Media in $33M Deal

 LFP Plans to Acquire New Frontier Media in $33M Deal
Get XBIZ News
Oct 15, 2012 3:00 PM PDT    Text size: 

BEVERLY HILLS, Calif. — LFP Broadcasting today said that it plans to acquire New Frontier Media in a deal valued in excess of $33 million.

The acquisition, expected to close during the fourth quarter of the year, must be approved by New Frontier Media stockholders, who will be paid $2.02 per common share in cash up front, plus a contingent cash payment right of up to six cents for each common share.

The acquisition price represents approximately a 79 percent premium to New Frontier Media’s closing stock price on March 8, one day before the Boulder, Colo.-based transactional TV service received an unsolicited acquisition proposal from Channel Islands-based Longkloof, an investment group that owns 15.9 percent of New Frontier Media, and a bid by adult entertainment conglomerate Manwin, which operates Playboy TV.

LFP President Michael Klein, at the company's Beverly Hills, Calif., office, said that the New Frontier Media deal would benefit and help grow both entities.

“The acquisition of New Frontier Media fits perfectly with our strategic plan for the growth of our company,” Klein said. “The addition of these assets to our portfolio strengthens us significantly moving forward.”

Alan Isaacman, New Frontier Media's chairman of the company's board of directors, said in a statement to company employees that the "definitive agreement" represents a "defining moment" for both companies.

"The proposed combination will create significant opportunities for us to address a broader market and deliver enhanced value for our customers and partners," he said. "We will also enjoy increased financial stability, scale and opportunity to invest and continue to innovate.

"The employees of New Frontier Media and LFP Broadcasting have many reasons to feel very good about our future. Separately, we have strong capabilities and product offerings for our customers. Together, we will even be stronger. Being a leading distributor of content to the adult media industry means delivering on what matters to our customers and makes them successful. This is as important as ever. It is vital for us to focus on our customers and make this transition a non-event for them."

Isaacman, an attorney who recently was appointed New Frontier Media chairman after former CEO Michael Weiner was terminated, represented LFP founder Larry Flynt in the 1988 Supreme Court case between Hustler magazine and Jerry Falwell.

New Frontier Media shares closed at $1.30 in regular trading on Monday, prior to the announcement.

The deal is subject to at least 50 percent of outstanding shares being tendered, among other conditions. The tender offer is to begin within 10 business days.

New Frontier Media sells adult video-on-demand and pay-per-view content through satellite, cable and hotel networks. Offerings include Penthouse TV premium channel and The Erotic Networks, which include Xtsy, Juicy and VaVoom.

LFP Broadcasting LLC offers adult entertainment through Hustler TV, which is available through cable, satellite, and hotel TV providers as a video-on-demand or pay-per-view television network. Hustler TV, available in more than 55 countries, has exclusive broadcasting rights from a large number of top studios. Parent company LFP markets the Hustler brand through a wide range of media properties and licensing initiatives, beyond broadcasting to include publishing, retail, Internet, mobile, apparel, novelties, clubs and video. The company also owns the Hustler Casino.

More ways to get XBIZ News:  RSS Feeds  |  E-Newsletters  |  Desktop Widget  |  Mobile
Looking for porn star news and behind-the-scene videos? Check out XFANZ.com !

PROFILES & BIOS

WIA Profile: Nancy Moore

Each month, industry news media organization XBIZ spotlights the career accomplishments and outstanding contributions of Women in Adult. WIA profiles offer an intimate look at the professional lives of... More »

WIA Profile: Janet Rini

Each month, industry news media organization XBIZ spotlights the career accomplishments and outstanding contributions of Women in Adult. WIA profiles offer an intimate look at the professional lives of... More »

Rise of SFW Cams for Voyeurs

Since its inception, Chaturbate could be called many things from sexy to successful, but one thing it can’t really be called is safe for work. It’s no secret that the entire adult cam industry... More »
XBIZ NEWSLETTERS
Stay informed of the latest industry developments. Get XBIZ newsletters delivered to your inbox. Subscribe today!
Enter email address:

* To manage existing subscriptions click here.






POPULAR PRODUCTS & SERVICES
Submit your press release to
multiple news outlets with 1 click.
Subscribe to RSS news feeds or
add free content to your website.
Access XBIZ news and articles
with your mobile device.
Subscribe to XBIZ World magazine, the industry's leading e-commerce trade publication, delivering in-depth coverage of the online, mobile and ancillary digital markets.

UPCOMING EVENTS

Everything To Do With Sex Show

Jan 27 - Jan 29
Halifax, Nova Scotia

The European Summit

Mar 04 - Mar 07
Barcelona-Sitges, Spain

The TEA Show

Mar 05 - Mar 06
Hollywood, CA

Phoenix Forum 2017

Mar 23 - Mar 26
Tempe, Arizona
Everyday thousands of business professionals browse XBIZ's industry directory for quality products and services. Not listed yet? Your company could be losing potential new business. Submit your company today!
Use XBIZ RSS feeds to stay informed of the latest industry developments or as a content syndication tool for your website!