The company that owns pornographic video-streaming platform Pornhub is being acquired by a new private equity firm based in the Canadian capital of Ottawa.
Ethical Capital Partners has agreed to buy MindGeek, owner of a variety of pornographic streaming platforms and studios, according to a statement Thursday from the companies. Terms were not disclosed.
MindGeek was engulfed in controversy three years ago because of allegations that videos of underage women appeared on its platforms, causing Visa and Mastercard to sever ties, Canada’s parliament to launch an inquiry, and the company to seek a buyer. In response, Prime Minister Justin Trudeau’s government advanced a proposal to crack down on harmful online content, though the measures were criticized as too draconian and the effort has since fallen down the legislative agenda.
Ethical Capital was formed last year and says it is focused on technology businesses that “have legal and regulatory complexity and that put a value on transparency and accountability.” This is its first transaction. It’s led by cannabis entrepreneur Rocco Meliambro and criminal lawyer Fady Mansour, who is listed as managing partner. Derek Ogden, a retired chief superintendent of the Royal Canadian Mounted Police, is also a partner at the firm.
“The adult entertainment industry will always be the subject of significant legal and regulatory scrutiny,” Ogden said in the statement. “Our pre-close reviews revealed that MindGeek operates legally and responsibly. We look forward to communicating the path forward for MindGeek and its holdings.”
Ethical Capital would not disclose its investors, but confirmed that they do not include former MindGeek owners Bernd Bergmair, Feras Antoon and David Tassillo, who will no longer be involved in the company, according to a spokesperson.
Though it’s legally headquartered in Luxembourg, most of MindGeek’s operations are based in Montreal. Pornhub ranked as the 12th most visited website in the world last year, according to traffic analytics firm Similarweb.
