MindGeek, which was founded in Montreal in 2004 and is now headquartered in Luxembourg, includes a large portfolio of adult entertainment properties.
The largest provider of adult entertainment says it must “take a leading role” in the fight against illegal content.
The maker of the well-known but contentious online pornographic website Pornhub, MindGeek, is being acquired by a private equity firm in Ottawa.
The purchase agreement between Ethical Capital Partners and the buyer is not being made public.
The adult entertainment company MindGeek, which was established in Montreal in 2004 and now has its global headquarters there, has a sizable inventory of such properties.
A number of high-profile lawsuits have been filed against it in recent years as a result of media reports alleging that Pornhub published videos that were sexually exploitative. Due to criticism, the website removed millions of pornographic movies.
One California complaint representing 50 women, including several Canadians, stated that Pornhub willfully produced and profited from films of them that were published without their consent. In October 2021, the lawsuit was resolved.
The company “must play a leading role in the fight against illicit content across the internet,” Ethical Capital Partners stated in a Thursday news release, adding that it will assist MindGeek with its study and adoption of the finest online safety procedures.
Mastercard and Visa stopped allowing credit cards to be accepted on the Pornhub site in 2020 on concerns that they were promoting access to sexually exploitative material.
A federal privacy watchdog in Canada also looked into the business after hearing from women who said Pornhub ignored their requests to have the films removed.
Solomon Friedman, a partner at ECP, responded positively when asked by CBC News if the company paid a lower price for Mindgeek because of its legal issues.
Intimate photographs will be protected and young people’s safety will be prioritized, he added, adding that the company will handle “everyone who engage — content creators and users — with respect [and] dignity, ensuring complete, voluntary, informed permission.”
