Pornhub’s takeover is about technology — not sex: sources

Business

On the money

as if Lydia Moynihan

March 23, 2023 | 4:15 p.m

Yes, it’s true – buyout firm Ethical Capital Partners has bought PornHub’s parent company – and some insiders say the deal is about technology, not sex.

In a press release, Canada-based Ethical, the parent company of the giant smut site MindGeek – which has spent the last few years fighting against sex trafficking and child pornography – declared that it is “built on trust, security and foundation.” respect”

But perhaps even more surprising to some, according to industry insiders, technology could be a key driver of the deal — and technology could help solve the ethical issues that have dogged pornography from the beginning, eventually.

In particular, there are those who believe that the beards and lewd plot lines of male porn stars in the 70s and 80s are outdated. .

Every major technological change has been pioneered by obscenity: from VHS tapes to DVDs to Internet video, they have all been popularized by obscenity.

And now the same thing is happening with generative AI and deep forgery – buying this is a great way to get into this business before most of the sex work is computerized and dramatically reduces the costs of content creation.

The source added that in a few years, creating pornographic images could cost nothing – and ECP could come up with an asset that would require less investment to run and generate higher returns.

Ethical Capital Partners has promised that the leadership that will put the company in charge will be clear, but still refuses to say who it will be.

ECP partner Solomon Friedman said in a press release: “We have defended sex workers and we have seen discrimination.” “There is stigma and there is shame and that means there are discussions and debates where those most affected are absent.”

But some financial types think ACP’s spin is strategic — and make the purchase appear to help and empower women.

“A lot of institutions aren’t allowed to invest in ‘sin stocks’ like tobacco. Playboy had the same problem with its first IPO. It looks like they’re trying to make a company that sells porn that protects the safety of children and sex workers,” one financial expert told the Post.

The acquisition was announced a day after Netflix premiered a documentary about the company called “Money Shot: The Pornhub Story.” PornHub has been sued by 34 women after a New York Times article accused the website of hosting child porn. Visa and MasterCard have temporarily suspended payment services.