Mobile internet craze leads to traditional media crisis, adult media "attic" bankrupt

The trend of mobile interconnection has caused traditional media to be in jeopardy, even for adult media. Recently, FriendFinder, a publisher of the famous American men's adult magazine "Garret" (Penthouse), filed for bankruptcy in court. In addition to adult magazines, the company also operates adult-oriented dating sites such as adultfriendfinder.com, asiafriendfinder.com and so on.

The company applied to the court for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code, that is, after the bankruptcy reorganization is completed, the company will operate again. The company says the debt burden is now heavier and needs to be reduced by a bankruptcy reorganization of about $300 million trillion of debt. At present the company's debt between 500 million to 1 billion U.S. dollars, and its assets of less than 10 million U.S. dollars.

Earnings figures show that the company has been losing money since the 2008 financial crisis. In the second half of last year and in the first half of the year four quarters, the company's total income of 293 million U.S. dollars.

The company said in court documents that, despite the interest of members in the content is not reduced, access traffic is still very large, but the company's financial health problems. FriendFinder said it had already reached an agreement with some of its creditors to restructure its debt, and had already launched a "11-chapter bankruptcy" related to the process of capital injections.

In 2010, FriendFinder once offered 210 million dollars to acquire rival Playboy Group, but the deal was unsuccessful.

In the field of adult media, the internet has become the protagonist, traditional magazine survival difficult. It should be noted that the original owner of The loft, "General media company", was also bankrupt in 2003, after the magazine was acquired by FriendFinder company.