The already hostile takeover fight for New Frontier Media, the publicly traded owner of nine adult-themed pay-per-view networks, has expanded to include a pair of Hollywood power players – one of whom is also a former video game executive.
Longkloof Limited, which launched the bidding in early March, recently announced its intention to nominate four new board members at New Frontier's annual meeting in an apparent attempt to push its $19 million offer through. (Porn giant Manwin has made a competing $24 million offer for the company.)
Longkloof is New Frontier's largest stockholder, but does not control the six-seat board. To rectify that, it has recruited Eric Doctorow, former executive vice president at Miramax and president of worldwide video for Paramount (as well as chief operating officer of video game company THQ and Barbara Wall, former EVP of Television for Lion's Gate,to fill two of the seats.
Also backing Longkloof are a pair of executives from Sabido Investments, a company owned by Hosken Consolidated Investments – Longkloof's parent firm.
New Frontier has decried the move, calling it "a transparent attempt to take control of" the company.
"It is unfortunate that rather than choosing to engage constructively with the Special Committee’s financial advisor, Hosken has chosen to launch a potentially costly and distracting proxy contest," said Alan L. Isaacman, chairman of New Frontier Media’s special committee designed to evaluate the Longkloof and Manwin bids, in a statement.
Both bids for New Frontier, which also produces many of the films that air late at night on Cinemax and Showtime, were unsolicited. On March 9, Longkloof offered $1.35 per share, a figure that was quickly trumped by Manwin's $1.50 offer.