LARRY FLYNT OF THE INTERNET COMPANY Internet Entertainment Group, President and CEO AGE 26 ADDRESSwww.ieg.com BIOSex doesn't sell on its own. Like any other product, it needs someone to get it to
market. And no one is better at packaging it online than Seth Warshavsky. It was
Warshavsky's IEG that acquired the homemade sex video of Pamela Anderson
and Tommy Lee and then broadcast it online; it was also IEG that posted nude
photos of Dr. Laura Schlesinger. Guess what? It works. This year more than
100,000 subscribers paid $24.95 a month for basic access to the company's
flagship clublove.com site. A relentless innovator, Warshavsky has branched out
into gambling (goldenoasis.com) and psychic advice (psychiczone.com) as well as
get-rich-quick real estate investment programs (zerodown.com). Another
division, IEG Medical Services, takes Web orders for Viagra. Still another
produces bizarre pay-per-view webcasts of live brain surgery and sex-change
operations. This is no money-losing Internet company: profits this year were $15
million. The company's highly respected infrastructure includes a fraud-control
database that weeds out bad credit cards and its own "push" technology to
broadcast video through an unenhanced browser window.
FORWARD TILT Warshavsky's biggest test: Will Wall Street do a Web porn IPO?
Top-tier underwriters DLJ and Goldman Sachs have already passed. But one is all
it will take to vault IEG into the ranks of adult companies like Playboy and Spice
Entertainment.
