New Frontier Media of Boulder, Colorado, said yesterday it agreed to acquire Interactive Gallery Inc., a Los Angeles-based e-commerce company. IGI is one of the largest distributors of adult Internet material. The deal was for an undisclosed amount.
New Frontier, the parent company of TeN, an adult entertainment pay-per-view and subscription cable/satellite service, said it expects IGI's revenues to exceed $21 million for the 12 months ending March 31. New Frontier said the purchase will move it ahead in developing broadband Internet content.
IGI sells memberships to consumers who access content from IGI's numerous adult websites. IGI also sells and distributes content to thousands of adult websites.
The closing of the transaction is subject to the approval of New Frontier Media's Board of Directors and shareholders, and the receipt of all requisite regulatory approvals. According to New Frontier Media CEO Mark Kreloff, the acquisition marks the beginning of an aggressive campaign for New Frontier Media to consolidate the estimated $1 billion adult Internet industry.
IGI [ igallery.net ] has pioneered live, in-browser video-conferencing and claims more than 15 million visitors each month to their in-house websites.
Earlier this month, New Frontier Media announced that its subsidiary, Colorado Satellite Broadcasting, had completed the installation of a state-of-the-art digital playout system at the company's headquarters in Boulder. Launch date for the system is scheduled April 1. The system will allow high-quality cable, satellite and broadband playout.
Shares of New Frontier were up 3/8 in late Tuesday morning trading to 5-3/4 on the Nasdaq and hit a 52-233k high of 6 during the day.
In other news, New Frontier media exec Michael Weiner gives a deposition today in the petition for discovery filed by agricultural baron J.P. Lipson. Lipson, who filed a lawsuit against New Frontier Media in January, filed a petition for discovery in February, claiming that Weiner and company CEO Mark Kreloff were "unfit" to run the company. Attorney John Combs, former counsel for New Frontier Media, was also expected to give a deposition on behalf of Lipson. Combs' deposition has postponed until he can retain counsel.
