Larry Flynt Desires NFM’s Erotic EmpireLFP to Consummate Deal for $33 Million 10/21/2012 8:00 PM Eastern
Seven months after receiving its first unsolicited takeover offer, adult TV pioneer New Frontier Media has a potential new owner, Hustler magazine publisher and adult-services impresario Larry Flynt.
Flynt’s LFP Broadcasting agreed to purchase New Frontier for about $33 million, ending what has been an active several months for the Denverbased adult-TV company.
New Frontier shareholders apparently liked the deal, driving its stock price up 54% (70 cents) last Tuesday to $2 per share.
New Frontier, which distributes adult channels The Erotic Networks, VaVoom, Penthouse TV, XTSY and Juicy, received its first takeover bid in March, a $1.35 per share offer from Channel Islands investment group Longkloof Ltd. That was followed later that same month by a $1.50 per share proposal by Playboy TV distributor Manwin Holdings.
New Frontier created a special committee of independent directors to evaluate those proposals and in April hired financial adviser Avondale Partners to explore its strategic opportunities, including a possible sale.
In September, New Frontier terminated its cofounder, chairman and CEO Michael Weiner, replacing him with long time board member and attorney Alan Isaacman.
In a memo to employees filed with the Securities and Exchange Commission Oct. 16, Isaacson called the merger a “defining moment” for New Frontier.
Wrote Isaacson: “The proposed combination will create significant opportunities for us to address a broader market and deliver enhanced value for our customers and partners. We will also enjoy increased financial stability, scale and opportunity to invest and continue to innovate.”
LFP Broadcasting is an affiliate of LFP Inc., which markets and distributes the Hustler brand through a wide variety of media properties and licensing initiatives, including broadcasting, publishing, Internet, mobile, apparel, novelties, clubs and video. LFP also owns the Hustler Casino in Gardena, Calif. Its Hustler TV is available in 55 countries.
Both parties expect the deal to close in the fourth quarter.