Bullshit reaches limit - AFF and Iporn scuttlebutt

[Fausty]

^^ another interesting thing about this is how, essentially, the value of the Penthouse dead-trees magazine seems to be a non-factor in the business at this point. That's a brand that used to have quite a bit of value - and it's all been squandered. This is yet one more perfect example of the dynamic highlighted in Christenson's The Innovator's Dilemna.

The IAC comparison is further misleading, in that those properties are already well-established. If memory serves, they were not immediately profitable upon founding - many companies must grow through losses to reach profitability. Comparing, ceteris paribus, a younger company in a given market to one with more of a foundation already in place is basically apples to oranges - not to say that Various is or is not on a sustainable growth trajectory.

Personally, it just seems to me like a "concept" website that could be nicely profitable and flexible enough to be relevant across time if it were not saddled with massive corporate overhead. One thinks of the minimalist style of Craigslist administration - versus a project like this with the full phalanx of lawyers, accountants, middle managers, secretaries, memo-writers, PR flacks, etc. etc. Peel that crap away and there's probably a decent business hidden underneath.

Fausty

[Hell Puppy]

Hail Mary indeed.

No one in their right mind tries an IPO in this market unless they have to. I seriously doubt they can get enough for the offering to come anywhere close to that debt.

I haven't looked at the balance sheet, but with that debt hanging over them and with the current return rates, that paper will be worthless.