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Sunday, November 27, 2022

Penthouse Global Media Sold To XVideos

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WGCZ S.R.O, the parent company of XVideos and brands like BangBros and Porno.com was the highest bidder in an auction of the assets of the bankrupt Penthouse Global Media.

WGCZ S.R.O. offered $11.2 million for all of Penthouse Global Media’s assets including intellectual property, publications, broadcasting and digital rights. Excluded from the agreement was income generated from a cooperation with Vice Industry Token as well as the club franchise and licensing rights for Penthouse’s gentlemen’s clubs. Those rights were sold for $1.075 million to the current licensee company: Penthouse Clubs Global Licensing LLC.

Pending on the approval of the trustee of the bankruptcy proceedings involving Penthouse Global Media, the sale will close by June 15.

Al Masse who served as investment banker for the bankruptcy case said that the interest for Penthouse assets was high. More than 400 entities from the adult industry were interested in possibly buying the assets of the once influential Penthouse group.

WGCZ won the auction against the so-called »stalking horse bidder«,  a company by the name of Dream Media that claimed Penthouse owes them $10.3 million. Dream Media offered additional $3 million for the assets but that didn’t do the trick.

Dream Media’s CEO Adam Levin is also CEO of Oreva Capital, an investment company owning High Times and several LGBT media brands like Pride and LGBT.com.

WGCZ will now own one of the most glamorous names in adult entertainment. Next to porn studios and websites like BangBros, XXX.com, Swingers.com, Vidz.com and Chicks.com the Penthouse brand might lose its cultural influence but it definitely will be part of a lucrative group.

The legendary company was founded in 1965. It publishes the Penthouse Magazine which is famous for its Penthouse Letters. Additionally it operates 8 TV channels available in more than 100 countries. Aside from that, it owns a lot of films and digital rights and many websites.

The sale of Penthouse to one of the digital porn networks is another example of how the old titans can’t cope with the new developments disrupting the adult industry for two decades now. Penthouse’s insolvency trustee David Gottlieb came to the conclusion that Penthouse wouldn’t be able to restructure its debts on its own. The group lead by Kelly Holland who bought the company from FriendFinder Networks was administratively insolvent and operating at an ongoing loss. Gottlieb, therefore, had no other path than to sell off Penthouse’s assets.

Kelly Holland couldn’t turn the company’s faith around. Her time at the top of one of the most iconic adult companies comes to an end after more than 20 years working for Penthouse.


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