Are AFF going public?

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  • Paul Markham
    Too old to care
    • Jun 2001
    • 52942

    #1

    Are AFF going public?

    Just read it on another board.

    http://idea.sec.gov/Archives/edgar/d...390/i10357.htm

    There's a very interesting statement in the report.

    In fact there are lots of interesting things.



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  • Paul Markham
    Too old to care
    • Jun 2001
    • 52942

    #2
    I only read it quick because we have the family here.

    Read this and tell me if it means what I think it means.

    Our ability to continue as a going concern is dependent on our ability to raise additional capital, including from this offering. As of September 30, 2008, our balance sheet had approximately $43.3 million in cash and restricted cash and $420.1 million in short-term debt, net of unamortized discount, $411.0 million of which had been reclassified from long-term debt, due to our failure to comply with certain covenants and restrictions in the agreements governing our 2005 Notes and 2006 Notes and our subsidiary?s First Lien Senior Secured Notes, Second Lien Subordinated Secured Notes and Subordinated Convertible Notes and for which waivers had not been obtained. We have unsuccessfully sought to obtain waivers from all of our noteholders, except such waivers that have been obtained from Messrs. Bell and Staton in connection with the Subordinated Term Loan Notes, for our failure to comply with certain covenants and restrictions contained in these agreements. If we are unable to cure such defaults and/or obtain waivers, we could trigger the acceleration of payment provisions in such agreements which would require us to immediately repay up to approximately $466.0 million to our noteholders. We do not currently have sufficient cash to repay this indebtedness if our debt is accelerated and if the noteholders instituted foreclosure proceedings against our assets, the proceeds of the assets could be insufficient to repay such indebtedness in full. Under these circumstances, we may be unable to continue operating as a going concern.
    I read it as, if you're sending them traffic think long and hard about it.

    Back to the family.



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    • HandballJim
      Confirmed User
      • Sep 2008
      • 4024

      #3
      Wow nice find, If I am reading this report correctly...they are losing money? I don't see how they can be successful with a public offering with the current financial crises...and expect investors to put their money into something that is losing money. Unless they have something big for the future?

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      Comment

      • lulu36
        Confirmed User
        • May 2005
        • 1332

        #4
        interesting find Paul. i'm going back the family as well.
        Lulu, Web Marketing Consultant
        icq 405 731 449

        Comment

        • baddog
          So Fucking Banned
          • Apr 2001
          • 107089

          #5
          No, they just put out a PR as an early April Fool's prank.

          Comment

          • hypedough
            Confirmed User
            • Sep 2007
            • 3743

            #6
            Nice to see what they're making.

            Ricky D :: Hype Dough President | XBIZ.net | ICQ 172-939-826 AIM+Skype HypeDough | [NATS4]
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            Comment

            • Fabien
              Confirmed User
              • Jul 2003
              • 4789

              #7
              I suppose ALT too will get hit ?
              damn it !

              Comment

              • seeandsee
                Check SIG!
                • Mar 2006
                • 50945

                #8
                AFF going down?
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                Comment

                • Paul Markham
                  Too old to care
                  • Jun 2001
                  • 52942

                  #9
                  Originally posted by HandballJim
                  Wow nice find, If I am reading this report correctly...they are losing money? I don't see how they can be successful with a public offering with the current financial crises...and expect investors to put their money into something that is losing money. Unless they have something big for the future?

                  There is an adult hedge fund you can put your money into!!!
                  http://www.adultvest.com/
                  At the moment anyone who invests in something like AFF is taking a big gamble. There are boards where investors talk to each other. I remember them from the Acacia days, maybe a few posts on those would be good.

                  They are 100% dependent on affiliates sending traffic, affiliates get the wind of this and they will be thinking long and hard about their future relationships with AFF. Who would invest in a business built on such a flimsy basis?

                  Let's keep this going.



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                  Comment

                  • Paul Markham
                    Too old to care
                    • Jun 2001
                    • 52942

                    #10
                    From the other board.

                    I find it interesting that it is being underwritten by a Russian bank

                    http://www.theinquirer.net/inquirer/...s-to-go-public

                    http://www.telegraph.co.uk/finance/n...-downturn.html



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                    Comment

                    • fujiko
                      Confirmed User
                      • Jan 2008
                      • 566

                      #11
                      i hope they dont go out of business.
                      .

                      Comment

                      • DirtyDanza
                        Confirmed User
                        • Aug 2002
                        • 8375

                        #12
                        wow they don't make nearly as much as they shuould or I thought
                        Danza Bucks is back!!!

                        Comment

                        • NaughtyRob
                          Two fresh affiliate progs
                          • Nov 2004
                          • 29602

                          #13
                          They are, its news on avn.

                          http://www.avn.com/internet/articles/33921.html
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                          Comment

                          • TwinCities
                            Confirmed User
                            • Oct 2003
                            • 492

                            #14
                            CNET: Friendfinder not likely to find pals on wallstreet

                            http://news.cnet.com/8301-1023_3-101...g=2547-1_3-0-5

                            Comment

                            • crockett
                              in a van by the river
                              • May 2003
                              • 76818

                              #15
                              You just know they are trying to just get some money to save their asses. How much you want to bet they do a reverse spit with in a year, wiping out all the share holders.

                              It's a very common practice with penny stocks and any company that is trying to go IPO while losing money is likely going to be a penny stock sooner or later.

                              Some other things affiliates should look at is they claim their average customer spends $20. So how then do they pay out over $100 PPS? Think about that one for a min. Even if that $20 is per month it wouldn't make a $100 plus PPS profitable.

                              I'd rather buy stock in Gillette if you get my drift.
                              Last edited by crockett; 12-24-2008, 03:48 PM.
                              In November, you can vote for America's next president or its first dictator.

                              Comment

                              • nico-t
                                emperor of my world
                                • Aug 2004
                                • 29901

                                #16
                                lol @ aff

                                Comment

                                • SuzzyQ
                                  Confirmed User
                                  • Dec 2006
                                  • 1557

                                  #17
                                  All that tube traffic is doing wonders for them...lol..

                                  Comment

                                  • dav3
                                    Confirmed User
                                    • May 2007
                                    • 7348

                                    #18
                                    I guess ripping off affiliates isn't as profitable as it once was.
                                    Webmasters :: Juicy Ads :: ACWM :: Crak Revenue :: Money Tree

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                                    • slavdogg
                                      Confirmed User
                                      • Jan 2001
                                      • 3570

                                      #19
                                      On this Xmas even all i gotta say
                                      I hope AFF IPO goes smoothly

                                      I also hope Paul Markham gets raped by AlienQ to death.
                                      Adult Traffic for Sale

                                      Comment

                                      • Rui
                                        web
                                        • Dec 2001
                                        • 9533

                                        #20
                                        A certain group and type of site owners should be pretty much devastated by this..

                                        Wonder if there was a mainstream followup's on the sort of sites that AFF finances and supports, now that is something every possible investor should look up to.

                                        That and then having a class-action lawsuits from Artists in the Music, Movie,Software, Games-industry..upps :Z

                                        Comment

                                        • BlueDude
                                          Confirmed User
                                          • Apr 2008
                                          • 271

                                          #21
                                          If AFF ever do an IPO, I'll be the very first person to short this stock.

                                          Comment

                                          • Paul Markham
                                            Too old to care
                                            • Jun 2001
                                            • 52942

                                            #22
                                            Originally posted by DirtyDanza
                                            wow they don't make nearly as much as they shuould or I thought
                                            Proof that throwing money at getting traffic is not the key to success. In the end you have to sell the customer something he wants, needs and values. He has to come back again and again, both to your site and to the same product on other sites.



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                                            • DirtyDanza
                                              Confirmed User
                                              • Aug 2002
                                              • 8375

                                              #23
                                              Originally posted by Paul Markham
                                              Proof that throwing money at getting traffic is not the key to success. In the end you have to sell the customer something he wants, needs and values. He has to come back again and again, both to your site and to the same product on other sites.
                                              well said brother
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                                              Comment

                                              • EscortBiz
                                                Fuck Checks, CASH only!
                                                • May 2002
                                                • 19422

                                                #24
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                                                • Paul Markham
                                                  Too old to care
                                                  • Jun 2001
                                                  • 52942

                                                  #25
                                                  Originally posted by TwinCities
                                                  CNET: Friendfinder not likely to find pals on wallstreet

                                                  http://news.cnet.com/8301-1023_3-101...g=2547-1_3-0-5
                                                  This is very interesting.

                                                  ? Ad revenue of $152,356 a month for the nine months ending September 30 is skimpy. The company is hoping to change that, but acknowledges: "We have never generated significant revenue from internet advertising and may not be able to in the future."
                                                  With the credit crunch and it's going to get worse, what does this mean to all the sites that live off advertising on sites that pirate others work?

                                                  AFF going under or even just pulling out of Internet advertising is going to have a big knock on effect that will go beyond our industry. Pirate Bay make money from adverts, if the people on Pirate Bay don't buy off the adverts, those advertisers might think it's time to stop spending money there. Which means high traffic sites giving away things for nothing might not be able to pay there hosting bills. Won't stop it all together, but it will put a huge dent in the piracy industry.

                                                  This is just AFF but what are all the others really doing in profit from adverting on Piracy sites?

                                                  I never did think in a straight line. LOL



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                                                  Comment

                                                  • Paul Markham
                                                    Too old to care
                                                    • Jun 2001
                                                    • 52942

                                                    #26
                                                    Originally posted by crockett
                                                    You just know they are trying to just get some money to save their asses. How much you want to bet they do a reverse spit with in a year, wiping out all the share holders.

                                                    It's a very common practice with penny stocks and any company that is trying to go IPO while losing money is likely going to be a penny stock sooner or later.

                                                    Some other things affiliates should look at is they claim their average customer spends $20. So how then do they pay out over $100 PPS? Think about that one for a min. Even if that $20 is per month it wouldn't make a $100 plus PPS profitable.

                                                    I'd rather buy stock in Gillette if you get my drift.
                                                    I think in the present economic climate people and institutions will be very careful whare they gamble their money. A few posts in investors boards and this is a dead duck, I think.

                                                    As for the $100 payout anyone who thinks that can be sustained is not very bright. Again proof that offering it is not the key, you have to have a product that's worth $200 to offer an affiliate $100 for a sign up. Or rip someone off somewhere.


                                                    Originally posted by slavdogg
                                                    On this Xmas even all i gotta say
                                                    I hope AFF IPO goes smoothly.
                                                    I saw this post on the other board and it left me confused.
                                                    Do you work for AFF or have your future tied in with them?
                                                    Because for this to go smoothly and for it to bring money into the Adult Internet is crazy.



                                                    Blowout deal. 880 videos, 2,400 image sets, plus many RAW videos. $500.
                                                    PM me for a deal. Skype Paulmarkham70

                                                    Comment

                                                    • Slappin Fish
                                                      Confirmed User
                                                      • Jul 2007
                                                      • 2512

                                                      #27
                                                      Originally posted by Paul Markham
                                                      As for the $100 payout anyone who thinks that can be sustained is not very bright. Again proof that offering it is not the key, you have to have a product that's worth $200 to offer an affiliate $100 for a sign up. Or rip someone off somewhere.

                                                      Wrong.

                                                      AFF was and still should be a profitable business.

                                                      Problem is how Penthouse funded its purchase. Mostly Notes, basically they borrowed and dumped all the debt on AFF's books. So AFF has to pay for AFF. The company is now raising equity cash to pay the previous owners Various Inc.

                                                      Comment

                                                      • Paul Markham
                                                        Too old to care
                                                        • Jun 2001
                                                        • 52942

                                                        #28
                                                        Originally posted by Slappin Fish
                                                        Wrong.

                                                        AFF was and still should be a profitable business.

                                                        Problem is how Penthouse funded its purchase. Mostly Notes, basically they borrowed and dumped all the debt on AFF's books. So AFF has to pay for AFF. The company is now raising equity cash to pay the previous owners Various Inc.
                                                        So they bought the business expecting the profits from it to pay for the purchase. Now they think if they float the company they can pay the debt. And after that does not work what do you expect them to do next to pay the debt?

                                                        With executives carrying this kind of planning who is going to invest in the business?

                                                        I doubt if many will touch it.

                                                        What is clear from the report is the part about Internet advertising. Does not seem to pay as well as many thought. Maybe this will have more knock on effects than many thought.



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                                                        PM me for a deal. Skype Paulmarkham70

                                                        Comment

                                                        • ffmihai
                                                          keep walking...
                                                          • Jun 2002
                                                          • 7177

                                                          #29
                                                          when a company is that big, going IPO is not a bad thing. they will get even more advertising with it.

                                                          Comment

                                                          • Paul Markham
                                                            Too old to care
                                                            • Jun 2001
                                                            • 52942

                                                            #30
                                                            Good point, more Wall Street exec's logging in and joining is going to help. LOL



                                                            Blowout deal. 880 videos, 2,400 image sets, plus many RAW videos. $500.
                                                            PM me for a deal. Skype Paulmarkham70

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                                                            • DWB
                                                              Registered User
                                                              • Jul 2003
                                                              • 31779

                                                              #31
                                                              I wonder if the soon to be share holders know that the much of the content on those sites is stolen?

                                                              Comment

                                                              • andy83
                                                                Confirmed User
                                                                • Jun 2005
                                                                • 1605

                                                                #32
                                                                Originally posted by dav3
                                                                I guess ripping off affiliates isn't as profitable as it once was.

                                                                Comment

                                                                • slavdogg
                                                                  Confirmed User
                                                                  • Jan 2001
                                                                  • 3570

                                                                  #33
                                                                  Originally posted by Paul Markham


                                                                  I saw this post on the other board and it left me confused.
                                                                  Do you work for AFF or have your future tied in with them?
                                                                  Because for this to go smoothly and for it to bring money into the Adult Internet is crazy.
                                                                  i wash cars in AFF parking lot.. my future is tied to their execs driving cars to work.
                                                                  Adult Traffic for Sale

                                                                  Comment

                                                                  • Brujah
                                                                    Beer Money Baron
                                                                    • Jan 2001
                                                                    • 22157

                                                                    #34
                                                                    They could pull an AdultCheck, and terminate all but a select group of "Tier 1" affiliates. Then keep all that extra recurring income.

                                                                    This should save them millions. I hope they like my idea.

                                                                    Comment

                                                                    • Achmed's Wife Halimah
                                                                      Confirmed User
                                                                      • Mar 2008
                                                                      • 365

                                                                      #35
                                                                      Originally posted by slavdogg
                                                                      i wash cars in AFF parking lot.. my future is tied to their execs driving cars to work.


                                                                      baby boy, I would like to go for a ride ;)

                                                                      Comment

                                                                      • gooddomains
                                                                        Too lazy to set a custom title
                                                                        • Jul 2003
                                                                        • 10127

                                                                        #36
                                                                        they will be billionaires in no time

                                                                        Comment

                                                                        • Ace of Spades
                                                                          Confirmed User
                                                                          • Jul 2003
                                                                          • 472

                                                                          #37
                                                                          Paul you are so fucking stupid that I'm amazed you even can figure out how to post on gfy.
                                                                          Do people really click sigs?

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