Home > News > Beate Uhse to Take 50% Stake in Penthouse • Bookmark   • Newsletters   • Register Search Options

NEWS STORY

Beate Uhse to Take 50% Stake in Penthouse

Beate Uhse to Take 50% Stake in Penthouse
Get XBIZ News
Jul 19, 2004 3:57 PM PDT    Text size: 
NEW YORK — The operator of Europe’s largest chain of sex shops has struck a deal with Penthouse for half its stake, XBiz has learned.

German sex-toy shop operator Beate Uhse AG will share ownership with Luis Molina, the Mexican investor who invested in Penthouse International Inc., which owns General Media Inc. General Media is expected to emerge from Chapter 11 bankruptcy protection next month.

In the deal, Beate Uhse will pump $38 million into New York-based Penthouse, which also owns adult-site credit card processor iBill.

Beate Uhse sells erotic lingerie sex toys, and videos through its two mail-order catalogs, Beate Uhse and Pabo, and its chain of more than 200 sex shops in nine countries.

Beate Uhse also offers adult content through its website operations and a telephone sex network in Europe. It owns 49 percent of Beate-Uhse TV.

Beate Uhse, with nearly 1,400 employees, has a wholesale manufacturing business with two latex product plants in Germany and the Netherlands.

The Beate Uhse Erotik-Museum was opened in 1996 by Beate Rotermund — the company's late founder and former chairwoman — and is among Berlin's top tourist attractions.

The Flensburg, Germany-based public company had $333.4 million in revenue in 2003.

In May, Penthouse said its public shares — which rose 26 percent Monday to 18.9 cents a share — would no longer be traded on the Over-the-Counter Bulletin Board and that its stock had been relegated to the Pink Sheets, a stock quotation service that handles high-risk ventures and isn't regulated by the Securities and Exchange Commission.

Penthouse, which had $53 million in revenue in 2002, said the move to the Pink Sheets was due to a late filing with the SEC. The adult entertainment giant said that was caused by "a number of factors," including the company's acquisition this year of iBill.

The Justice Department is investigating Deerfield Beach, Fla.-based iBill in an antitrust probe along with two other large adult processors. The probe is seeking to determine whether the two competing online adult payment providers, as well as iBill, collaborated to set fees and if so, whether practices are anti-competitive.

Penthouse told XBiz in May that it believes potential legal claims relating to iBill are in the tens of millions of dollars.

IBill was acquired by Penthouse in March from InterCept Inc. through its Media Billing LLC division. The company said it learned of the federal investigation after closing the deal.

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 !

OPINIONS & VIEWS

Paysite Meetup: Catching Lightning in a Bottle

We just completed the first XBIZ.net Paysite Meetup in Prague. We caught lightning in a bottle. I first heard that expression from a friend who works in TV. He started in TV in the 1960s selling advertising,... More »

Why a Traffic Network Killed a Popular Offering

Change begets change. Nothing propagates so fast. If a man habituated to a narrow circle of cares and pleasures, out of which he seldom travels, step beyond it, though for never so brief a space, his departure... More »

Luring Cam Users With the Right Ad Format

The live cam marketplace is highly competitive filled with big-, medium- and small-sized players. So how do you stand out from the crowd to attract new users or persuade users to come back and spend their... 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.
Access the latest issues of the industry's leading trade publications in digital form. View online or download for offline viewing.

UPCOMING EVENTS

Latin America Adult Business Expo

Jul 10 - Jul 12
Cartagena, Colombia

XBIZ.net Paysite Meetup

Jul 13 - Jul 13
Barcelona, Spain

ANME Founders Show

Jul 16 - Jul 18
Los Angeles Marriott Burbank Airport

QWEBEC Expo

Aug 03 - Aug 06
Montreal, Quebec
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!