MindGeek, owner of several adult entertainment sites such as Pornhub, Brazzers and Redtube, has been acquired by Canadian private equity firm Ethical Capital Partners (ECP).
The ECP, which was set up last year, has not disclosed the terms of the deal.
“At MindGeek, we have identified a dynamic technology brand built on a foundation of trust, safety and compliance.With ECP’s resources and broad expertise across regulation, law enforcement, public engagement and finance, we know what We have a unique opportunity to enhance. It already exists,” said ECP founding partner Fady Mansour in a statement.
The acquisition follows a difficult few years for the porn giant. MindGeek CEO Feras Antoon and COO David Tassillo left the company in June 2022. MindGeek is also currently in the middle of multiple lawsuits alleging that it knowingly profited from Child Sexual Abuse Content (CSAM). As of December 2020, the platform is removing all unverified content and requiring everyone appearing in user-uploaded videos to verify their identities. Platforms like OnlyFans advocate similar policies as a way to police non-consensual content.
In its announcement, ECP called MindGeek “the Internet leader in combating illegal online content.” The private equity firm lists several policies in MindGeek’s trust and safety program, including moderation practices that require human moderators to manually review all uploads.
MindGeek and the online porn industry as a whole face significant risks from US laws like SESTA/FOSTA. The law provides a Section 230 exception that imposes liability on online platforms for facilitating prostitution and human trafficking, making credit card processors more cautious about violating the law. Payment and credit card companies such as PayPal, Mastercard, Visa and Discover do not currently process payments on sites such as Pornhub.
