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Adult Friend Finder Looking to Buy More Friends

Word on the street is that Adult Friend Finder is on the prowl. The internet dating destination is said to have generated more than $200 million in 2006, and clearly it wants more. Sources say that Adult Friend Finder is hunting for more companies to buy.

Sources, who prefer to remain anonymous, have told me about buyout offers they have received from Adult Friend Finder, presumably for the traffic their websites generate. As unique visitors are the lifeblood of any online operation, it is hardly surprising that Adult Friend Finder is eager to buy websites that collect plenty of eyeballs.

While two buyout offers do not make a pattern, it does make one wonder if there have been more. The two offers brought to my attention involve fairly young publications with significant potential. Neither generates large profits, but they have attracted media attention and large numbers of regular visitors. The apparent thinking is that Adult Friend Finder can monetize the traffic. Given their success, it is probably true.

The internet has been cannibalizing adult DVD revenues fro years, but individual companies have struggled to grow. Adult Friend Finder is the only one to have reached the top 10. Adult Friend Finder’s growth has been nothing short of amazing. Based on 2006 results, the last year for which financial are available, Adult Friend Finder is the third-largest porn company in the world, behind German retailer Beate Uhse and diversified media company Playboy.

Clearly, Adult Friend Finder has figured out how to turn eyeballs into money, making a strategy of traffic acquisition through business acquisition prudent. For acquisition targets with traffic and low revenues, accepting an offer from Adult Friend Finder could be a win/win.

But, it’s not that easy.

Both companies that acknowledged receiving buyout offers from Adult Friend Finder admitted that the numbers were too low. One website was approached on the floor of AdultExpo in 2006 but decided not to pursue the opportunity. He felt that his company’s likely value would lead to a low offer. By waiting, he figured he could monetize the traffic himself. The other company dismissed the offer quickly. “We didn’t really consider it,” he said, citing a low offer relative to his company’s potential.

The story of Adult Friend Finder’s appetite for acquisition is still unfolding. I suspect that more offers have been made, and I’ll continue to look around. If you have had an experience with Adult Friend Finder, please let me know. E-mail me at tom@aetoday.com. Even confidential conversations are welcome.

-Tom J