Are AFF going public?

[Paul Markham]

Just read it on another board.

http://idea.sec.gov/Archives/edgar/d...390/i10357.htm

There's a very interesting statement in the report.

In fact there are lots of interesting things.

[Paul Markham]

I only read it quick because we have the family here.

Read this and tell me if it means what I think it means.

Our ability to continue as a going concern is dependent on our ability to raise additional capital, including from this offering. As of September 30, 2008, our balance sheet had approximately $43.3 million in cash and restricted cash and $420.1 million in short-term debt, net of unamortized discount, $411.0 million of which had been reclassified from long-term debt, due to our failure to comply with certain covenants and restrictions in the agreements governing our 2005 Notes and 2006 Notes and our subsidiary?s First Lien Senior Secured Notes, Second Lien Subordinated Secured Notes and Subordinated Convertible Notes and for which waivers had not been obtained. We have unsuccessfully sought to obtain waivers from all of our noteholders, except such waivers that have been obtained from Messrs. Bell and Staton in connection with the Subordinated Term Loan Notes, for our failure to comply with certain covenants and restrictions contained in these agreements. If we are unable to cure such defaults and/or obtain waivers, we could trigger the acceleration of payment provisions in such agreements which would require us to immediately repay up to approximately $466.0 million to our noteholders. We do not currently have sufficient cash to repay this indebtedness if our debt is accelerated and if the noteholders instituted foreclosure proceedings against our assets, the proceeds of the assets could be insufficient to repay such indebtedness in full. Under these circumstances, we may be unable to continue operating as a going concern.

I read it as, if you're sending them traffic think long and hard about it.

Back to the family.

[HandballJim]

Wow nice find, If I am reading this report correctly...they are losing money? I don't see how they can be successful with a public offering with the current financial crises...and expect investors to put their money into something that is losing money. Unless they have something big for the future?

There is an adult hedge fund you can put your money into!!!
http://www.adultvest.com/

[lulu36]

interesting find Paul. i'm going back the family as well.

[baddog]

No, they just put out a PR as an early April Fool's prank.

[hypedough]

Nice to see what they're making.

[Fabien]

I suppose ALT too will get hit ?
damn it !

[seeandsee]

AFF going down?

[Paul Markham]

Originally Posted by HandballJim

Wow nice find, If I am reading this report correctly...they are losing money? I don't see how they can be successful with a public offering with the current financial crises...and expect investors to put their money into something that is losing money. Unless they have something big for the future?

There is an adult hedge fund you can put your money into!!!
http://www.adultvest.com/

At the moment anyone who invests in something like AFF is taking a big gamble. There are boards where investors talk to each other. I remember them from the Acacia days, maybe a few posts on those would be good.

They are 100% dependent on affiliates sending traffic, affiliates get the wind of this and they will be thinking long and hard about their future relationships with AFF. Who would invest in a business built on such a flimsy basis?

Let's keep this going.

[Paul Markham]

From the other board.

I find it interesting that it is being underwritten by a Russian bank

http://www.theinquirer.net/inquirer/...s-to-go-public

http://www.telegraph.co.uk/finance/n...-downturn.html

[fujiko]

i hope they dont go out of business.

[DirtyDanza]

wow they don't make nearly as much as they shuould or I thought

[NaughtyRob]

They are, its news on avn.

http://www.avn.com/internet/articles/33921.html

[TwinCities]

CNET: Friendfinder not likely to find pals on wallstreet

http://news.cnet.com/8301-1023_3-101...g=2547-1_3-0-5

[crockett]

You just know they are trying to just get some money to save their asses. How much you want to bet they do a reverse spit with in a year, wiping out all the share holders.

It's a very common practice with penny stocks and any company that is trying to go IPO while losing money is likely going to be a penny stock sooner or later.

Some other things affiliates should look at is they claim their average customer spends $20. So how then do they pay out over $100 PPS? Think about that one for a min. Even if that $20 is per month it wouldn't make a $100 plus PPS profitable.

I'd rather buy stock in Gillette if you get my drift.

[nico-t]

lol @ aff

[SuzzyQ]

All that tube traffic is doing wonders for them...lol..

[dav3]

I guess ripping off affiliates isn't as profitable as it once was.

[slavdogg]

On this Xmas even all i gotta say
I hope AFF IPO goes smoothly

I also hope Paul Markham gets raped by AlienQ to death.

[Rui]

A certain group and type of site owners should be pretty much devastated by this..

Wonder if there was a mainstream followup's on the sort of sites that AFF finances and supports, now that is something every possible investor should look up to.

That and then having a class-action lawsuits from Artists in the Music, Movie,Software, Games-industry..upps :Z

[BlueDude]

If AFF ever do an IPO, I'll be the very first person to short this stock.

[Paul Markham]

Originally Posted by DirtyDanza

wow they don't make nearly as much as they shuould or I thought

Proof that throwing money at getting traffic is not the key to success. In the end you have to sell the customer something he wants, needs and values. He has to come back again and again, both to your site and to the same product on other sites.

[DirtyDanza]

Originally Posted by Paul Markham

Proof that throwing money at getting traffic is not the key to success. In the end you have to sell the customer something he wants, needs and values. He has to come back again and again, both to your site and to the same product on other sites.

well said brother

[EscortBiz]

what the bankers say http://www.gofuckyourself.com/showthread.php?t=877713

[Paul Markham]

Originally Posted by TwinCities

CNET: Friendfinder not likely to find pals on wallstreet

http://news.cnet.com/8301-1023_3-101...g=2547-1_3-0-5

This is very interesting.

? Ad revenue of $152,356 a month for the nine months ending September 30 is skimpy. The company is hoping to change that, but acknowledges: "We have never generated significant revenue from internet advertising and may not be able to in the future."

With the credit crunch and it's going to get worse, what does this mean to all the sites that live off advertising on sites that pirate others work?

AFF going under or even just pulling out of Internet advertising is going to have a big knock on effect that will go beyond our industry. Pirate Bay make money from adverts, if the people on Pirate Bay don't buy off the adverts, those advertisers might think it's time to stop spending money there. Which means high traffic sites giving away things for nothing might not be able to pay there hosting bills. Won't stop it all together, but it will put a huge dent in the piracy industry.

This is just AFF but what are all the others really doing in profit from adverting on Piracy sites?

I never did think in a straight line. LOL

[Paul Markham]

Originally Posted by crockett

You just know they are trying to just get some money to save their asses. How much you want to bet they do a reverse spit with in a year, wiping out all the share holders.

It's a very common practice with penny stocks and any company that is trying to go IPO while losing money is likely going to be a penny stock sooner or later.

Some other things affiliates should look at is they claim their average customer spends $20. So how then do they pay out over $100 PPS? Think about that one for a min. Even if that $20 is per month it wouldn't make a $100 plus PPS profitable.

I'd rather buy stock in Gillette if you get my drift.

I think in the present economic climate people and institutions will be very careful whare they gamble their money. A few posts in investors boards and this is a dead duck, I think.

As for the $100 payout anyone who thinks that can be sustained is not very bright. Again proof that offering it is not the key, you have to have a product that's worth $200 to offer an affiliate $100 for a sign up. Or rip someone off somewhere.

Originally Posted by slavdogg

On this Xmas even all i gotta say
I hope AFF IPO goes smoothly.

I saw this post on the other board and it left me confused.
Do you work for AFF or have your future tied in with them?
Because for this to go smoothly and for it to bring money into the Adult Internet is crazy.

[Slappin Fish]

Originally Posted by Paul Markham

As for the $100 payout anyone who thinks that can be sustained is not very bright. Again proof that offering it is not the key, you have to have a product that's worth $200 to offer an affiliate $100 for a sign up. Or rip someone off somewhere.

Wrong.

AFF was and still should be a profitable business.

Problem is how Penthouse funded its purchase. Mostly Notes, basically they borrowed and dumped all the debt on AFF's books. So AFF has to pay for AFF. The company is now raising equity cash to pay the previous owners Various Inc.

[Paul Markham]

Originally Posted by Slappin Fish

Wrong.

AFF was and still should be a profitable business.

Problem is how Penthouse funded its purchase. Mostly Notes, basically they borrowed and dumped all the debt on AFF's books. So AFF has to pay for AFF. The company is now raising equity cash to pay the previous owners Various Inc.

So they bought the business expecting the profits from it to pay for the purchase. Now they think if they float the company they can pay the debt. And after that does not work what do you expect them to do next to pay the debt?

With executives carrying this kind of planning who is going to invest in the business?

I doubt if many will touch it.

What is clear from the report is the part about Internet advertising. Does not seem to pay as well as many thought. Maybe this will have more knock on effects than many thought.

[ffmihai]

when a company is that big, going IPO is not a bad thing. they will get even more advertising with it.

[Paul Markham]

Good point, more Wall Street exec's logging in and joining is going to help. LOL

[DWB]

I wonder if the soon to be share holders know that the much of the content on those sites is stolen?

[andy83]

Originally Posted by dav3

I guess ripping off affiliates isn't as profitable as it once was.

[slavdogg]

Originally Posted by Paul Markham

I saw this post on the other board and it left me confused.
Do you work for AFF or have your future tied in with them?
Because for this to go smoothly and for it to bring money into the Adult Internet is crazy.

i wash cars in AFF parking lot.. my future is tied to their execs driving cars to work.

[Brujah]

They could pull an AdultCheck, and terminate all but a select group of "Tier 1" affiliates. Then keep all that extra recurring income.

This should save them millions. I hope they like my idea.

[Achmed's Wife Halimah]

Originally Posted by slavdogg

i wash cars in AFF parking lot.. my future is tied to their execs driving cars to work.

baby boy, I would like to go for a ride ;)

[gooddomains]

they will be billionaires in no time

[Ace of Spades]

Paul you are so fucking stupid that I'm amazed you even can figure out how to post on gfy.