Investors owning more than 83% of New Frontier’s stock accepted Larry Flynt’s $33M offer — $2.02 a share, plus a 4 cent a share cash payment right — which expired at midnight. That means the Hustler publisher’s Flynt Broadcast has the votes needed to buy the publicly traded company “without the affirmative vote of any other New Frontier shareholder,” the company says. Still, Flynt will buy additional shares directly from New Frontier, at the same price he offered others, to reach 90% — the threshold that would enable him to complete the deal under Colorado law as a “short-form” merger. New Frontier shares are up 1.5% today to $2.05, a 95% increase over the last 12 months — but down nearly 60% over the last five years as the company struggled to compete with the proliferation of online porn. New Frontier produces VOD features, and offers the Penthouse TV premium channel and pay-per-view services packaged as The Erotic Networks (or TEN) that include Xtsy, Juicy, and VaVoom.
New Frontier shares are up about 35% in after-hours trading following an announcement that seems to mark an end to the battle over pay TV’s top supplier of porn movies and channels. Hustler magazine creator Larry Flynt‘s LFP Broadcasting signed a definitive agreement that values New Frontier at $33M, or $2.02 a share — a 55% premium over today’s closing price. The deal is expected to close by year end. New Frontier says that the board unanimously endorsed the agreement. It ”creates a great opportunity for our organization, cable television partners and customers as two of the premier adult media broadcasting companies join forces,” New Frontier says. Flynt wants to move fast: Within 10 business days, LFP Broadcasting will begin the process by offering shareholders $2.02 per share, without interest — and under certain circumstances he may add as much as 6 cents per share. His offer expires on the 20th business day. In accepting Flynt’s offer, New Frontier rejected a bid from investment firm Longkloof, which owns 15.9% of the company. Last month the company fired CEO and co-founder Michael Weiner, considered by the board to be too closely allied with Longkloof. It also received an offer from Luxembourg-based Manwin, which bought Playboy TV late last year.