December 21, 2010 | The Biz

AEBN buys Falcon, merges with Raging Stallion

The gay porn industry just shrunk again: video-on-demand giant AEBN has acquired Falcon Studios and merged it with Raging Stallion. AEBN'S gay division now encompasses the two famous brands as well as Naked Sword (acquired in 2007) and the Gunz Blazing online affiliate program, which operates over 15 gay membership sites.

Raging Stallion’s Chris Ward will now oversee both studios. Tim Valenti, of Naked Sword, and Brian Randall, of Gunz Blazing will join Ward in co-managing AEBN's gay division.

Falcon was founded in San Francisco in 1971 by Chuck Holmes and was the first  studio to liberate gay erotica from underground. Many San Francisco and L.A.-based studios were to follow. But while traditional gay porn studios made money hand over fist in the years when VHS and DVDs ruled, they have had major challenges adapting to the online world. The result: bankruptcies, mergers and outsourcing.  

This past summer Falcon outsourced the management of its online property to Montreal-based Buddy Profits / Next Door Entertainment. AEBN has indicated that this deal will remain in place. Over the past 18 months Buddy Profits / Next Door Ent. was also awarded a contract to operate COLT Studio's affiliate program and just a couple weeks ago announced it would be taking over the online operations of the Hot House websites as well.

Falcon has been for sale for years, but had not found a suitor until now.