XXX in Tech
In what is the least happy ending ever, the parent company of AdultFriendFinder.com is filing for Chapter 11 bankruptcy. FriendFinder Networks, which also publishes Penthouse magazine, said Tuesday that is plans to reduce its debt by $300 million and will hand over control of the adult-themed social networking site to two noteholders.
XXX in Tech
Girls Gone Wild, the long running reality TV-style XXX franchise whose creator Joe Francis cajoled college women to strip on camera, has filed for bankruptcy. This is the part where you cheer.
SecondMarket is most popularly known as a private company equity exchange and indeed, the startup’s fastest-growing business consists of private company stock sales. That would be the Facebook and Twitter and other pre-IPO share shuffling that happens before a company goes public. And of course, a lot of demand is in tech (although PIMCO has traded on SecondMarket before, as has SecondMarket).
But a report out this month reminds us that one of SecondMarket’s most important and perhaps unexpected services involves transactions related to bankruptcy. SecondMarket compiles data about bankruptcy asset transactions and calculated that bankruptcy claims slowed in October.
The company doesn’t say how much revenue comes from bankruptcy claims, but it says the bulk of its revenue comes from fixed income securities such as debt instruments and asset-backed securities. Bloomberg reported that SecondMarket did $400 million in private company shares in 2010 and is on track to do $1 billion.