This article originally appeared on Rich Tehrani’s (News - Alert) Communications and Technology BlogThe world is going daily deal crazy and the multi-billion dollar Groupon valuation is no doubt a huge factor.  While some companies have pulled back from this category, purveyor of porn, Penthouse, is purchasing an Asian daily deals company valued at just over $50M.

What this tells us is the paid-porn business is still in trouble thanks to sites like redtube, pornhub and xvideos, places where users can get tons of free porn. Yet the eyeballs are still there - so if you can find a way to increase the revenue per eyeball of your porn site, you are in great shape.

And this, my friends, explains why FriendFinder Networks, owner of the Penthouse magazine brands and many adult-oriented online communities, has acquired BDM Global Ventures for approximately $65 million. Expect the trend to continue.


Rich Tehrani is CEO of TMC. In addition, he is the Chairman of the world’s best-attended communications conference, INTERNET TELEPHONY Conference & EXPO (ITEXPO (News - Alert)). He is also the author of his own communications and technology blog.

Edited by Stefania Viscusi