New Frontier Shareholder Backs Out on Management Buyout

NEW YORK — Hedge fund guru Warren Lichtenstein has begun selling some of his 12.5 percent stake in Boulder, Colo.-based New Frontier Media in favor of pursuing an earlier offer to finance a management buyout of the adult entertainment satellite distributor.

Lichtenstein, who runs the Steel Partners hedge fund, had been on an aggressive buying streak, picking up a sizeable stake in New Frontier over the past two years.

Known as an activist investor, Lichtenstein’s interest in New Frontier had fueled speculation that the company’s management would take him up on his offer to finance its buyout and take the company private.

While a spokesman for Steel Partners declined to comment on the decision to begin selling off the hedge fund’s position in New Frontier, Matthew Goldstein, the Wall Street editor for TheStreet.com, said it was clear Lichtenstein has reversed his strategy because management elected not to take the investor up on his buyout offer.

“New Frontier's management never took Lichtenstein up on his offer of orchestrating a buyout of the company,” Goldstein said. “Instead, it countered with its own plan to keep shareholders, including Lichtenstein, happy. Last month it announced it would pay a special dividend of 60 cents a share to shareholders of records as of Jan. 15, and would institute a semi-annual dividend going forward.”

Steel Partners earned $1.8 million on the special dividend.

Over the course of two years, Steel Partners has seen its investment in New Frontier grow by an estimated 66 percent. According to a Securities and Exchange Commission filing, the hedge fund began its profit-taking in the company by unloading nearly 600,000 New Frontier shares earlier this week at an average price of $10 per share.

News of Lichtenstein’s about face sent New Frontier shares down nearly 3 percent to $9.75.

Steel Partners’ stake in New Frontier is estimated at $29 million.

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Taylor Nicole Launches New Site Through YourPaysitePartner

Creator Taylor Nicole has launched her new official website through YourPaysitePartner (YPP).

Adult Networking Platform SpicyGigs.com Launches

SpicyGigs, a new adult industry networking platform, has officially launched.

Pineapple Support to Host 'Cream Pie Challenge' Fundraiser

Pineapple Support is hosting its Cream Pie Challenge through August to raise funds for mental health services for industry performers.

Kyrgyzstan President Signs Measure Outlawing Internet Porn

President Sadyr Japarov of Kyrgyzstan on Tuesday signed into law legislation outlawing online adult content in the country.

NC Legislature Overrides Veto of Extreme Anti-Adult Industry Bill

The North Carolina state legislature on Tuesday voted to override Gov. Josh Stein’s veto of a bill imposing regulations that industry observers have warned could push adult websites and platforms to ban most creators and content.

Report: VPN Downloads Soar in UK Following Age Verification Deadline

Virtual private network apps, which can be used to circumvent geo-specific age verification requirements, are topping Apple App Store downloads in the U.K. in the wake of new Online Safety Act rules, the BBC is reporting.

Strike 3 Holdings Sues Meta for Pirating Vixen Media Group Content to Train AI

Vixen Media Group owner Strike 3 Holdings filed suit in federal court this week, accusing Facebook parent company Meta of copyright infringement and alleging that Meta has extensively pirated VMG content to train its artificial intelligence models.

Pineapple Support, Streamate to Host 'Navigating Grief and Loss' Support Group

Pineapple Support and Streamate are hosting a free online support group to help performers cope with grief and loss.

Friday is Final AV Compliance Deadline in UK

Friday, July 25 marks U.K. media regulator Ofcom’s deadline for user-to-user services such as tube, cam and fan sites to implement its requisite “highly effective age assurance” measures for preventing minors from viewing adult content.

AEBN Publishes Popular Searches for May, June

AEBN has released the top search terms for the months of May and June from its straight and gay theaters in all 50 states and the District of Columbia.

Show More