FriendFinder Networks Inc. (“FFN”) announced today that based on market conditions, it has chosen not to proceed with its planned initial public offering at this time until market conditions improve.
Investors are analysts were wary of the company’s plans to go public (on the New York Stock Exchange, under the symbol “FFN.”) in order to repay debt – it was reportedly paying $75 million in interest on operating profit of $45 million last year and carries a massive debt load of $471 million.
The internet holding company reported net revenue of $244.4 million in the nine months ended 30 September 2009, compared with $243.9 million in the same period a year ago. Even with this small revenue increase, filings showed sales were flat.
Florida-based FFN (formerly Penthouse Media Group) operates sites like Penthouse, Adult FriendFinder, Bondage.com, Cams.com and BigChurch.com and many more. It filed a registration statement with the SEC in December 2008, hoping to raise $460 million in the initial public offering at the time (this was later adjusted to $220 million).
Penthouse acquired Adult FriendFinder in December 2007 for approximately $400 million.
Question is what will become of the company now, and if it will stay afloat long enough for ‘market conditions to improve’.