Internet porn has devastated old-fashioned smut rags. We now hear a top executive at FriendFinder Networks, the publisher of Penthouse, wants to close the money-losing magazine down. But his boss denies it.

While Richard Bottoms's sexual discrimination case against Penthouse Media Group continues, the Palo Alto man angry with his dismissal from the company tells us he's now planing a new round of suits against the company, seeking $1 in damages. In an email to Penthouse management announcing his plans to sue, Bottoms alleged that company developers were instructed to copy eHarmony.com when building sites Alt.com and Bondage.com.

Financier and CEO Marc Bell plans to take Penthouse Media Group public in a $250 million IPO. If investors take the bait, it'll likely be on the strength of Adult FriendFinder and the rest of the Web properties Penthouse bought from Andrew Conru last December for $500 million. After the acquisition, Penthouse projected its 2007 revenues would reach $340 million — most of that from Adult FriendFinder. Some of the proceeds from the IPO, if it succeeds, will go to pay off debt from the acquisition.

Congratulations, Andrew Conru: Danni Ashe is now your coworker. As the porn-magazine business quietly biodegrades in the ashbin of history, the founder of Adult FriendFinder has sold his company, Various Inc., to Penthouse for $500 million. This despite his earlier denials. The price actually seems low, considering Various's projected revenues this year of $340 million. But the porn business has always suffered from a market discount, as distaste thins the ranks of willing investors. FriendFinder's troubles with the Federal Trade Commission, settled one day before the sale was closed last Friday, can't have helped. What's next for Adult FriendFinder's new owner?