3Media has completed a buyout of Conwest Resources – operators of the Falcon Family of Companies, including Falcon Studios, Jocks Studios, Mustang Studio, and Falcon International – from the Charles M. Holmes Foundation. Falcon senior executives Terry Mahaffey and Todd Montgomery and former Conwest Resources board member Steve Johnson, who formed 3Media to arrange and complete the buyout, will now concentrate entirely on operating the Falcon companies.
The deal, say Mahaffey and Montgomery, should help make Falcon even stronger and more dominant in the gay adult entertainment market. "The Falcon brand is iconic in this industry," Mahaffey said, announcing the 3Media buyout, "and I am pleased and honored to be part of the team that will ensure this continues to be true in the future."
Both men said they wanted to see Falcon continue the vision of its legendary founder, Chuck Holmes, while the deal also frees up the Charles M. Holmes Foundation to concentrate on charitable giving to gay and lesbian causes.
"We realized that the current ownership structure was, the equity of the company was held in trust by the charitable foundation whose mission was to provide charitable funds for (various causes)," Montgomery told AVN.com. "The foundation's mission was philanthropic, while the operating company core mission was to generate revenue and profit. And we felt that that could be better facilitated through a sale to senior management. It allows the management team more flexibility on how it operates to grow the company forward."
In the 3Media setup, Mahaffey will continue focusing on film production and talent development as Falcon Family president and chief executive, while Montgomery will run business and operations as the president and chief executive of the operating company, expected to assume the Conwest Resource name in the near guture.
Mahaffey and Montgomery took leadership roles at Falcon in June 2003, redeveloping domestic distribution, creating new international wholesale and retail channels, and launching new online shopping, streaming, and membership Websites.
"We were never at odds," said Montgomery of the interaction between the Falcon companies and the Holmes Foundation, "but obviously the foundation wants to give as much money away as possible, and the company wants to generate and keep as much money as possible. And it would leave the company in the hands of a management team that would continue Chuck Holmes's legacy of producing the best gay adult content, period, while keeping the company intact."
