Porn Bailout: Larry Flynt, Joe Francis Seeking Government Money

An article in next month's Atlantic asks, "Is porn recession proof?" According to porn magnate Larry Flynt and "Girls Gone Wild" king Joe Francis, the answer is no.

TMZ reports that the pornographer pair is heading to Washington to ask for a $5 billion porn bailout:

"With all this economic misery and people losing all that money, sex is the farthest thing from their mind," Flynt says. "It's time for Congress to rejuvenate the sexual appetite of America."

Francis sees his industry like the big three automakers, only BIGGER: "Congress seems willing to help shore up our nation's most important businesses; we feel we deserve the same consideration."

In the Atlantic article, Tom Johansmeyer reports that AdultVest, a hedge fund run by Francis Koenig that invests in porn-related assets, was up 50% in 2008 (a number that Joe Wiesenthal at ClusterStock says ought to be taken with a grain of salt). Johansmeyer goes on to discuss the recession effect on the porn industry:

Relatively small, fragmented, and unaccustomed to outside investment, the U.S. porn industry (which generated roughly $12 billion in 2007) is some­what buffered from today's credit crunch, but it has its own problems. Video sales have been falling by 15 percent a year since 2005, and online content doesn't deliver the returns it used to, now that Web sites such as RedTube and PornHub basically give it away. Struggling companies need investors to help right their operations, and those that are thriving in a brutal market need funding for growth.

Enter Koenig and AdultVest. He sees the porn downturn as temporary and believes that technological improvements will trigger a turnaround. One example: iPorn, a start-up in AdultVest's portfolio that is developing an application to deliver porn to the Apple iPod. "The industry's not going anywhere," Koenig says. "You've got 6 billion people on the planet," he laughs, "and they're all horny."

Watch Francis discuss the bailout for the porn industry with TMZ:

Comments

[2wit]

My understanding: The application for the first half TARP money is a farcical two page document of general information - little more complicated than forms for a first time doctors visit.. There is nothing to declare as to how the money will be spent or ability to payback. This application is reported to be little more than corporate NINJA loan policy - an expanded version of the homeowner "liar loan" that got our economy in the dumper to begin with. Anyone fitting into a broad spectrum of business criteria may apply with no regulation or stipulation as to how the money would be used - a good faith gesture on the taxpayers dollar.

If this indeed the case, I find that Larry Flint’s application for bailout money is a public service that illustrates how unsupervised and outrageously irresponsible the first half of the TARP money has been doled out. It would be a complete hoot if he was awarded the money and hopefully teach some lessons on how NOT to hand out the second portion of TARP money.

Thanks Larry for saving Congress hours of debate on, "What went wrong????"

[crica]

The oldest profession in the world. Second oldest is Politics, but with lower morals than the first.

[humble liberty]

This is a legal industry, made in America. There's no reason they can't be helped... maybe decline to, but not refuse.

GIve em an injection. A money shot, even.

[BearmanCartoon]

Maybe if Flynt takes this angle, he might get his money....

http://bearmancartoons.wordpress.com/2009/01/10/bearman-cartoon-larry-flynt-wants-a-bailout/

[captainindustry]

the jury's still out.

it's a hung jury.

[swkidder]

Thank you, Grasshopper, you chose your words wisely. it's important to uphold the Huffington Post's reputation for both wit and a sincere dedication to the inappropriate ....

[emstrem]

I love the fact that a lot of people in this country look down on these two guys because of how they have accumulated their wealth...get a grip people. This isn't your great-grandparents America, most people dont go to church on Sundays, and more and more do not believe in God (I do btw)...but man o man I love PORN. It is a great feeling when you throw your 6-Pack of Budweiser on the counter to tell the guy on the register to "Give me the June issue of Hustler too"

[captainindustry]

I couldn't bring myself to click on Joe Francis, (I have a daughter) But let's give the devil his due. We ALL know that porn was one of the reasons that the internet has developed technologically as quickly as it has.

And let's also congratulate them on the great work they have done with America's youth. Every teenager has seen to much, and innocence is no longer an option.

Let's not stop till we have pornified the entire world!! We're number one!!!!!

[309blank]

aw come on you prudes :) stop producing sucky cars and keep producing good porn. what is wron with porn anyways? i never really understood what's so bad about it or make such a fuss about it it

[Isis N]

I'm on your side for this one.

[lynjs]

Why not? This is the only industry where at least you get what you pay for; with many repeat customers.

[aweissnet]

Good points.

And the porn industry is less damaging than the others bailed out.

(This feels like satire)

[thuglife007]

i love it! go porn!

[Tags]

If that hedge fund stays up for longer than 4 hours, you better consult a physician.

[Sardonica]

Larry Flynt probably doesn't have a lot of fans here on HuffPost but, despite the unseemly nature of his business, he is truly a remarkable man. He's got a long history of tweaking the government and trying to expose hypocrisy. And I think this latest idea is absolutely inspired. Go Larry!

(Joe francis though? Ew. creepy)

[oldbrit]

I'd much rather bail out the porn industry than crooked banks, mortgage companies, and stock brokers.

And, anyway, Larry Flynt is a real American hero.

He beat Jerry Falwell in the Supreme Court over a free speech issue, was directly responsible for the downfall of Bob Livingston, and indirectly for the downfall of Newt Gingrich, and offered rewards for evidence of sexual misconduct by hypocritical Republicans who went after Bill Clinton.

[FdeBear]

I'm concerned that this has been in the press so long. This is a joke - right? Social satire?

[msjimmied]

Aw come on! this has been the most fun to read thread and I can't believe it's still going on. Keep it up guys...

It's contagious!