October 21, 2009 | The Biz

Maleflixxx sold to Private Media Group

The only remaining gay owned and operated video-on-demand company has been sold to a European porn conglomerate. Private Media Group (PMG) has bought Sureflix Digital Distribution, the parent company of Maleflixxx, in an all stock deal.

The acquisition increases PMG's presence in the video-on-demand market. The company had already purchased Gamelink in January, helping expand their reach into internet protocol television, broadcast, mobile and DVD products.

"With Sureflix, we are extending our platform and expertise into the gay market," Bunimovitz continued. "Sureflix was an important deal, but it must be viewed in the context of an aggressive growth plan fueled by solidifying our position in emerging markets ... and growing our share in existing markets by aggregating premium content for our global network.”

“It is hard to imagine a better fit across all aspects of a deal,” Sureflix President Eric Johnson said. “Sureflix wanted stronger penetration into distribution channels that Private dominates.... As part of Private, we will be able to offer producers the most developed distribution network in the industry."

The owners of  Maleflixxx will recieve 3,900,000 shares of PMG in the deal, with an additional 2,100,000 shares promised if revenue targets are met. PMG shares are listed on NASDAQ, currently trading at 75 cents.