The Business Of Porn Brings Down A CEO

from the but-why? dept

If you follow e-commerce or payment processing systems at all, you’ve probably known for years that iBill’s main business was processing payments for porn sites. This wasn’t particularly secret information. However, the CEO of the company that bought iBill is now in trouble for hiding the porn aspect of the business. It’s not entirely clearly what the big deal is. First off, as mentioned, iBill’s business wasn’t at all secret. Second, if the company made a conscious decision to get into the business (and it apparently does generate plenty of cash), what’s the problem? They don’t seem to be accused of doing anything illegal. There are plenty of perfectly legitimate businesses out there that make money from porn. It’s certainly an investors right not to invest in such companies (and the CEO, in this case, should have been much more forthcoming about how much of iBill’s business was porn), but why is this such a big deal?


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Comments on “The Business Of Porn Brings Down A CEO”

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NOBODY (user link) says:

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Mike the issue here isn’t that they are dealing in porn. The issue, like you said is that it’s any investor’s right not to invest in it. If the CEO did not disclose that to his investors (who should have asked where the business comes from. What lagitimate site is going to pay their 15% commission fee?), then it is his fault. But if you’re going to assign blame, they also should have asked.

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