Penthouse Buys AdultFriendFinder For $500 Million

Here’s another story of a web property selling at a premium. Penthouse recently announced that they have purchased Adultfriendfinder, an adult dating website for $500 million in cash and securities.

Penthouse bought Various Inc, which operates in total more than 25 online communities with a combined member base of some 260 million people. Its AdultFriendFinder site has more than 18 million members.

Penthouse estimates combined 2007 revenue after the deal of $340 million.

This should serve as inspiration to any webmaster that has dreams of building a web community, growing it out and selling it for a profit.

I expect to hear news of many other websites geared towards social networking going for a high P/E.

What are your thoughts on Penthouse’s acquisition?

Reuters

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