Private’s Sureflix Acquisition a ‘Strategic Accelerator’

BARCELONA — Private Media Group announced its official acquisition of gay content distributor Sureflix Digital, disclosing stock issuance details included in the deal.

The company announced its plans to take over leadership of Sureflix and its presence in the gay online market in October, and now that the deal is final, Private CEO Ilan Bunimovitz said the company will extend into a new market space.

“Together, we offer the most comprehensive catalog to affiliates and consumers,” Bunimovitz said. “This is an accretive acquisition and it will act as a strategic accelerator for both parties, enabling growth into new markets and territories while opening up new business relationships.”

In the deal, 3.9 million unregistered shares — 6 percent of total outstanding shares — were issued to the owners of Sureflix, and additional 2.1 million shares of Private common stock will be bestowed based on targeted revenue.

The two companies’ combined six-month revenue, a time span that ended June 30, totals $19.3 million, a 21 percent increase of Private’s alone.

Sureflix President Eric Johnson said he feels Private is a perfect fit, and is confident that the acquisition strengthens distribution channels for gay content. The company also owns MaleFlixxx.tv and SplashShots.com, two gay video-on-demand networks.

“As part of Private, we will be able to offer members of the industry the best distribution network,” Johnson said. “This deal opens many revenue channels and allows us to deliver the distribution muscle of a storied international brand to our premium catalog.”

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