Jason Galanis - Trademark Investments

Trademark Investments

Galanis is known for providing financing to Robert Guccione’s General Media, the owner of the PENTHOUSE trademarks and publisher of Penthouse Magazine. He provided financing prior to the bankruptcy reorganization and as part of the bankruptcy exit plan. The permanent financing was led by Post Advisory Group, a Principal Financial Group (NYSE: PFG) subsidiary that manages approximately $9 billion in various credit strategies. Galanis introduced Post Advisory to Penthouse.

In 2002, Galanis identified an opportunity to acquire certain Internet licensing rights to registered trademarks owned by Penthouse, the company founded by Robert Guccione in 1965. Galanis and Guccione reached agreement to acquire the rights to the Penthouse brand for use on the Internet and Galanis agreed to finance Guccione’s magazine publishing business. Galanis paid Guccione an upfront fee of $1.0 million for the Internet rights.

In October 2002, a public company of which Galanis beneficially owned 73%, acquired 99.5% of General Media, the parent company of Penthouse. Galanis was the first outside equity shareholder of Penthouse since its founding in the 1960’s, and he continued to invest in Penthouse through 2003, when Guccione ordered the company placed into voluntary bankruptcy protection.

Galanis then lead the investment group that committed $68 million to the bankruptcy Plan of Reorganization to restructure General Media through chapter 11. Galanis and his financial partner from Mexico City led the refinancing group, which was participated by Post Advisory Group, a $9 billion division of Principal Financial Group, the life insurance company.

Penthouse Media Group, now known as FriendFinder Networks, is one of the largest social media companies in the world with 38,000 websites, more than 445 million registrants and more than 298 million members in more than 200 countries and $345 million in revenues in 2010. It is controlled by financier and technology entrepreneur, Marc Bell.