Key Points
- An 'ethical' private equity firm has purchased the world's biggest porn website.
- Ethical Capital Partners announced its purchase of Pornhub parent company MindGeek this week.
- Pornhub has been the target of a wave of lawsuits and allegations.
This article contains references to rape and child sexual abuse.
Canadian private equity firm Ethical Capital Partners this week announced its purchase of beleaguered MindGeek which operates Pornhub, the world's biggest pornography site.
The terms of the transaction were not disclosed following Thursday's announcement.
MindGeek, which is headquartered in Luxembourg but has large offices in Montreal, has been the target of several lawsuits alleging it profited from the distribution of child pornography and non-consensual sex videos - which it has denied.
New owner Ethical Capital Partners "seeks out investment opportunities in industries that require principled ethical leadership", the Ottawa-based firm's chair Rocco Meliambro said in a statement.
"Our philosophy is rooted in identifying properties amenable to our responsible investment approach and that have the potential to create attractive returns over a compelling time horizon," he said.
"We believe the adult entertainment industry is being influenced by evolving public views and regulatory approaches, and the time is appropriate for evolving this business.”
Founded in 2004, MindGeek operates a large portfolio of adult entertainment sites, including Pornhub, YouPorn, Redtube and Men.com.
The market leader in internet porn, however, has faced a growing backlash since the New York Times in December 2020 published an article in which Pornhub was accused of posting illegal content online, including child pornography and rape videos.
That led Canadian lawmakers to grill executives about alleged abuses, while Mastercard and Visa suspended payments on Pornhub. Its top executives resigned in June 2022.
Solomon Friedman, a founding partner of Ethical Capital Partners, said the firm was "engaged with the team at MindGeek and with stakeholders, including content creators, advocates, law enforcement, civil society partners and policy makers to inform our efforts and strengthen MindGeek's secure platforms, going beyond legal and regulatory obligations".
Mr Friedman said that "public and transparent dialogue is the only path forward to destigmatise the legal choices of adult performers and consumers".
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