I am not too surpsied to see this happen. I posted this back in February
http://www.gfy.com/showthread.php?t=...hlight=Porno+D
I expect a long more of the traditional DVD based companies to sell, merge or close over the next 6 months.
Great article on this by Steve Javors of XBIZ.com
Metro Interactive Sold to Zeist Technologies
New ownership plans to diversify content offerings to emphasize Internet and content sales, while continuing to release new DVDs
By Steve Javors
Tuesday, Sep 30, 2008
CHATSWORTH, Calif. ? Adult studio and distributor Metro Interactive has been sold to Zeist Technologies (Z-Tech) for an undisclosed sum. The deal includes Metro?s extensive adult content library and its base of operations in Chatsworth.
Zeist Technologies is a new, Amsterdam-based adult content provider headed by CEO Ben Jelloun.
?I look forward to this tremendous opportunity to maximize Metro?s substantial assets and resources and build on its position in the adult entertainment industry,? Jelloun said. ?I am extremely excited about Metro?s future prospects and its growth potential as new media platforms are created.?
According to Jelloun, Z-Tech plans to continue Metro?s operations in Chatsworth, which includes retaining all employees and management.
?I have lots of new and unique product ideas for Metro and because of Metro?s foothold in the marketplace, I will be able to hit the ground running,? Jelloun said. ?The transition should be seamless. All employees and management will stay in place, and our sales department will continue to be led by Russell Pascale, who?s 20 years in sales experience will be key in Metro?s future distribution growth.?
Metro now will be referred to by its new name, Metro Content, LLC in order to better reflect its new direction that includes a new emphasis on Internet and content sales, while continuing production on its DVD lines.
?I am happy to turn over the company to Mr. Jelloun, who I am sure will take Metro to a whole new level? Metro founder Ken Guarino said. ?The business is changing rapidly, and given the current economic conditions, it requires a global business plan that maximizes ancillary revenues for continued success. Metro has built a very diverse and extensive library over the years and continues to release quality product. I feel that Jelloun will manage and build on this foundation, maximizing Metro to its true value potential.?
Jelloun has a 12 year background in the adult Internet industry. Prior to forming Z-Tech with a group of foreign investors Jelloun served as CEO of Interclimax, a leader in live streaming of adult content. Jelloun specializes in traffic generation, Internet content sales through affiliates and online brand recognition.
The studios Video Team, Fusxion, Loaded Digital, Legal Pink, No Man?s Land Productions, Cal Vista and Toxxxic Entertainment all fall under the Metro umbrella.