from: http://www.xbiz.com/news/155276
Now This one came outta nowhere
I knew NOOF ( The stock symbol for New Frontier Media) was in play, I knew Manwin wanted it to use it as a backdoor to going public, I didn’t expect LFP to be the one to cock block it.
As I see it the reasons NOOF would be attractive is to use it to go public like Manwin planned or to use it as an entry into the cable/PPV market Manwin already has that with Playboy and If I am not mistaken so does LFP (Contractually with NOOF) but in LFPs case it might be nice to own that outlet outright to compete with Manwin/Playboy.
I do not see LFP using it to go public but ya never know
As I mentioned to you in Email a while back, this was the perfect place for Manwin to go, getting to be public without having to actually do the public offering, and being able to ride the stock price as it went up as a result of a takeover.
Well, surprise for them (and us) that LFP came along. Think of this as a clear indication that LFP expects the porn world to be much more than a one horse race, and that they see enough long term income to pay for this sort of purchase. They still got off cheap.
You should also follow the logic that these companies are getting rid of the middlemen all over the place in the industry. They are buying their way closer to the consumer, getting rid of anyone taking a percentage of the pie along the way. This is everything from distribution to payment systems, with almost every player opening their own payment processing companies all over the world, to get that percentage of the pie as well. The point is they can continue to drive the price down or to do more work in house.
My guess at this point is that LFP will actually move to take the company private again, for the moment, possibly to build up to an IPO at a point where the market is more sure of itself. I suspect it will be easier for them than it is for Manwin, who will have to first expose all of their businesses before they can go public, which may be why they were looking for a backdoor.