Friend Finder Networks
{{Short description|American internet company}}
{{Infobox company
| name = Friend Finder Networks Inc.
| logo =
| type =
| industry = Online dating, sex industry
| fate =
| predecessor = Penthouse Media Group
| successor =
| founded = {{Start date and age|1996}} (as Various, Inc.)
| founder = Andrew Conru, Lars Mapstead
| defunct =
| hq_location_city = Boca Raton, Florida
| hq_location_country = U.S.
| area_served =
| key_people = Andrew Conru, CEO{{cite web |last=Bachman |first=Justin |title=When Sex Doesn't Sell: FriendFinder Networks Files for Bankruptcy |url=http://www.businessweek.com/articles/2013-09-18/when-sex-doesnt-sell-friendfinder-networks-files-for-bankruptcy |archive-url=https://web.archive.org/web/20130920050100/http://www.businessweek.com/articles/2013-09-18/when-sex-doesnt-sell-friendfinder-networks-files-for-bankruptcy |url-status=dead |archive-date=September 20, 2013 |publisher=Business Week |accessdate=10 May 2014}}
| products =
| owner =
| num_employees =
| num_employees_year =
| parent =
| website =
}}
Friend Finder Networks (formerly Various, Inc.) is an American internet company founded in 1996 by Andrew Conru and Lars Mapstead. Its corporate headquarters are located in Boca Raton, Florida, with additional offices in California, New York, and Taiwan.{{cite web |url=http://www.investors.com/et/dfs/2011/1525688/0001398432-11-001015/d28931.HTM |title=AMENDMENT NO. 2 TO FORM S-1 |publisher=SEC |date=2011-12-16 |accessdate=2014-06-10}}{{Cite web |last=Sharp |first=John |date=2023-03-23 |title=What's next for Libertarians? Presidential hopefuls bring platforms to Alabama |url=https://www.al.com/news/2023/03/whats-next-for-libertarians-presidential-hopefuls-bring-platforms-of-decriminalizing-drugs-ranked-choice-voting-to-alabama.html |access-date=2023-09-18 |website=al |language=en}}
The company primarily deals in adult entertainment, online dating, and social networking services. Its flagship online dating services include FriendFinder and its various spin-off services (such as Adult FriendFinder, and other dating services targeting various territories and niche categories, such as the South America-focused Amigos.com, and Christian dating website BigChurch), as well as niche websites for alternative lifestyles, and adult webcam websites.{{cite web |url=https://www.sec.gov/Archives/edgar/data/1451951/000139843212000273/ffc_10k-123111.htm |title=Form 10-K |work=FriendFinder Networks Inc. |publisher=Securities and Exchange Commission |date=2012-12-31 |accessdate=2013-09-17}} In 2007, the company was acquired by the owners of Penthouse magazine, and adopted its current name. In 2016, the Penthouse brand was sold off.{{Cite news |last=Alpert |first=Lukas I. |date=2016-01-21 |title=Penthouse Magazine Launches Digital Edition |language=en-US |work=Wall Street Journal |url=https://www.wsj.com/articles/penthouse-magazine-discontinues-print-edition-1452896450 |access-date=2020-11-22 |issn=0099-9660}}
History
FriendFinder was launched in 1996 by Andrew Conru and Lars Mapstead. After discovering that users had been using the service to seek sexual partners, he launched Adult FriendFinder as a spin-off, followed later by other spin-offs dealing with different regions and niches. Much of the company's growth without investment capital has been attributed to its affiliate program, with more than 500,000 affiliates to date.{{cite news|last=Stein |first=Joel |url=https://money.cnn.com/magazines/business2/business2_archive/2007/04/01/8403370/ |title=Social networking's dirty side - April 1, 2007 |publisher=Money.cnn.com |date=2007-03-30 |accessdate=2014-06-10}}
In 2007, Penthouse Media Group purchased FriendFinder's parent company, Various, Inc., for $500 million.{{cite news|last=Martin |first=Andrew |url=https://money.cnn.com/magazines/business2/business2_archive/2007/04/01/8403370/ |title=Penthouse Buys Group of Social-Networking Sites |work=New York Times |date=2007-12-12 |accessdate=2014-06-10}} Penthouse later changed its name to FriendFinder Networks.{{cite news|url=http://www.latimes.com/business/la-fi-penthouse-bankruptcy-20130918-story.html |title=Penthouse publisher FriendFinder files for bankruptcy protection - Los Angeles Times |work=Los Angeles Times |date=2013-09-17 |accessdate=2014-06-10 |first=Stuart |last=Pfeifer}}
In 2008, the company filed for a $460 million initial public offering.{{cite news|url=https://www.reuters.com/article/friendfinder-ipo-idUSN2353285220081223 |title=UPDATE 1-FriendFinder files for $460 million IPO |publisher=Reuters |date=2008-12-23 |accessdate=2014-06-10 |first=Phil |last=Wahba}} Most of the money generated was to pay down $420.1 million in short-term debt and other obligations.{{cite news|url=https://blogs.wsj.com/digits/2008/12/24/the-friendfinder-ipo-filing-just-the-naughty-bits/ |title=The FriendFinder IPO Filing: Just the Naughty Bits |work=Wall Street Journal |date=2008-12-24 |accessdate=2014-06-10}}
As of January 17, 2010, FriendFinder Networks had a negative net worth equal to $118 million, $32 million in cash on hand and $650 million in liabilities. The company had also indicated that it lacked existing cash or cash from operations to repay a $44.5 million debt that was due July 31. It has cautioned that, unless it can repay or restructure its obligation, it will face “a material deficiency in our short term liquidity.{{cite web|url=http://www.crainsnewyork.com/article/20100117/SUB/301179968 |title=Two words, lads: Penthouse IPO | Crain's New York Business |work=Crain's New York |date=2010-01-17 |accessdate=2014-06-10}}” With these shortfalls in mind, the company again announced an intention to make an initial public offering of stock, representing a 49% stake in the company, with plans to use the proceeds to pay down its debt and become listed on the New York Stock Exchange. The contemplated public offering, scheduled to reach the market on January 27, 2010 was delayed by FFN.{{cite news| url=https://www.bloomberg.com/apps/news?pid=20601109&sid=aXzfn87oC8cI | work=Bloomberg | title=FriendFinder Networks Said to Delay IPO to Next Week (Update3) | date=January 27, 2010}} On February 5, 2010, FFN announced its intention to indefinitely delay its contemplated IPO until market conditions improve.{{cite web|author=Gillian Reagan |url=http://www.businessinsider.com/amidst-crashing-markets-debt-ridden-friendfinder-delays-its-ipo-2010-2 |title=Crashing Markets Delay FriendFinder's Porn IPO |publisher=Business Insider |date=2010-02-05 |accessdate=2014-06-10}}
In June 2010, FriendFinder Networks made a $210 million bid to acquire Playboy Enterprises.{{cite news|last=Vanacore |first=Andrew |url=http://usatoday30.usatoday.com/money/media/2010-07-16-playboy-friendfinder-offer_N.htm?csp=usat.me |title=Penthouse owner makes competing bid for Playboy|work=USA Today |date=2010-07-16 |accessdate=2014-06-10}} Hugh Hefner, who owned 70 percent of the voting stock, did not want to sell.{{cite news|author=Andrew Vanacore |url=http://www.huffingtonpost.com/2010/07/15/penthouse-owner-bids-for-_n_647840.html |title=Penthouse Owner Bids For Playboy |work=Huffington Post |date= 2010-07-15|accessdate=2014-06-10}}
= Bankruptcy, reorganization =
In August 2013, FriendFinder was delisted from the NASDAQ because its stock had not traded for more than $1. On September 16, 2013, the company filed for Chapter 11 bankruptcy protection.{{cite news|title=Penthouse magazine owner files for bankruptcy|url=http://www.latimes.com/business/money/la-fi-mo-penthouse-magazine-owner-files-for-bankruptcy,0,581995.story|newspaper=LA Times|accessdate=18 September 2013|first=Stuart|last=Pfeifer|date=September 17, 2013}}
FriendFinder had not turned a net profit since at least 2008. Ezra Shashoua, the company's chief financial officer, blamed the lower revenue on a drop in membership and increased advertising costs for affiliates, according to court documents. Shashoua also said credit card companies had refused to process transactions for the company's Internet businesses.{{cite news|last=Beaudette |first=Marie |url=https://www.wsj.com/news/articles/SB10001424127887323527004579080821727792140?mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424127887323527004579080821727792140.html |title=Penthouse Publisher FriendFinder Files for Bankruptcy Protection - WSJ |work=The Wall Street Journal |date=2013-09-17 |accessdate=2014-06-10}} The company stated it had negotiated a deal with noteholders that would reduce its debt by $300 million.{{cite news|url=https://www.reuters.com/article/friendfindernetworks-bankruptcy-idUSL5N0HD0RO20130917 |title=UPDATE 2-Penthouse publisher FriendFinder files for bankruptcy |publisher=Reuters |date= 2013-09-17|accessdate=2014-06-10}}
In December 2013, FriendFinder Networks' reorganization plan won court approval by the U.S. Bankruptcy Court in Delaware.{{cite news|last=Bathon |first=Michael |url=https://www.bloomberg.com/news/2013-12-16/friendfinder-alters-reorganization-plan-to-win-court-ok.html |title=FriendFinder Alters Reorganization Plan to Win Court OK |publisher=Bloomberg |date=2013-12-16 |accessdate=2014-06-10}} Founder Andrew Conru, was named as the reorganized company's chairman and CEO.{{cite web|author=Andrew B. Conru Ph.D. |url=http://investing.businessweek.com/research/stocks/private/person.asp?personId=8121728&privcapId=4881467&previousCapId=1599586&previousTitle=Friendfinder%20California,%20Inc |title=Andrew Conru: Executive Profile & Biography - Businessweek |publisher=Investing.businessweek.com |date= |accessdate=2014-06-10}}{{dead link|date=April 2023|bot=medic}}{{cbignore|bot=medic}}
In February 2016, FriendFinder Networks sold the rights to the Penthouse brand to Penthouse Global Media, a new company formed by the brand's managing director Kelly Holland.{{cite web|title=AdultFriendFinder network hack exposes 412 million accounts|url=https://www.zdnet.com/article/adultfriendfinder-network-hack-exposes-secrets-of-412-million-users/|website=ZDNet|access-date=14 November 2016}}{{cite web|title=Penthouse Wants You To Reclaim Your Vagina|url=http://www.huffingtonpost.com/sandra-lamorgese-phd/penthouse-sexual-liberation_b_11471944|website=Huffington Post|date=20 August 2016 |accessdate=14 November 2016}}
= Security breach =
On November 13, 2016, it was reported that a database of over 412 million accounts, including usernames, e-mails, and passwords, had been breached and leaked from several FriendFinder Networks websites. The breach included account data from Adult FriendFinder (which constituted over 339 million accounts), Cams.com, and Penthouse, including accounts that had supposedly been deleted. The passwords were either stored as plain text or encrypted using the obsolete and insecure SHA-1 cipher.{{cite web|title=Over 300 million AdultFriendFinder accounts have been exposed in a massive breach|url=https://www.theverge.com/2016/11/13/13615750/412-million-adultfriendfinder-accounts-exposed-breach|website=The Verge|date=13 November 2016 |accessdate=13 November 2016}}
References
{{reflist|30em}}