BOCA RATON, Fla. — The rumor that would not go away has turned out to be true. Penthouse Media Group Inc. announced today that it has purchased Various Inc., the Internet social networking behemoth that owns Adult Friend Finder, in a deal that is worth $500 million in cash and securities.

The announcement, made in a press release this morning, states that Various boasts an extensive affiliate network as well as a rapidly growing member base of more than 260 million consumers and a total paid subscriber list in excess of 1.2 million. Various operates more than 25 online communities including adultfriendfinder.com, which is a top 50 Web site nationwide with more than 18 million members.

"With $340 million in projected 2007 combined revenues, this acquisition makes Penthouse the largest adult entertainment company in the world," the press release reads.

“We are very excited to welcome Various and its employees as a part of the Penthouse family,” Penthouse Media Group CEO Marc H. Bell said. “Various is an attractive addition to our already strong print platform, and one that puts Penthouse in a very robust position in the ever-growing online social networking arena. We like where the business combination puts us and that this transaction will enhance PMGI’s current and future licensing, print and interactive ventures.”

“We are excited to be combining our substantial internet presence with one of the most recognized adult entertainment brands in the world,” Lars Mapstead, VP of Marketing for Various, Inc, said. “Together we will expand in many areas, both online and offline, to solidify our position as the world leader in adult entertainment.”