Hustler TV owner agrees to buy The Erotic Networks for $33M

The Erotic Networks parent company New Frontier Media (Nasdaq: NOOF) struck a $33 million deal Monday to be acquired by Larry Flynt's LFP Broadcasting, which distributes Hustler TV in cable and satellite TV homes.

The agreement follows a proxy fight and management change at New Frontier, which said last month that it had terminated CEO Michael Weiner. The distributor of The Erotic Network, Penthouse TV and other video-on-demand and linear porn channels announced in July that it would pursue a sale or merger by the end of the year to settle a proxy battle with investor Lonkloff Limited.

New Frontier said that LFP agreed to buy it for an upfront cash payment of $2.02 per common share, or about $33 million, in addition to a contingent cash payment right for each common share. The deal values New Frontier at a 79 percent premium to its closing stock price on March 8, the day before it announced that it had received an unsolicited acquisition offer.  New Frontier stock was trading at $2.00 per share at 10:10 a.m. ET Tuesday, up 70 cents, or about 54 percent.

New Frontier said that its board is recommending that shareholders approve the offer from Flynt. If the deal is approved, the U.S. adult programming business will be dominated by two key players--Flynt's LFP Broadcasting and Luxembourg-based Manwin Enterprises, which closed a deal to buy Playboy TV parent Playboy Enterprises last year.

For more:
- see the release

Related articles: 
New Frontier Media board fires CEO Michael Weiner
Vivid to launch adult network featuring celebrity videos in 20M homes
New Frontier agrees to shop The Erotic Networks to end proxy contest
Bidding war heats up for porn distributor New Frontier Media