Sunday, April 22, 2012

Psychic Friends Network Goes Public


Yes folks. The Psychic Friends Network is back.   The company, famous for 1990s infomercials starring Dionne Warwick, has a new website and listed on the over-the-counter bulletin board under the symbol PFNI on April 5. At the market close on April 18, its share price was $0.75. Who saw that one coming? (Sorry.)

“We never disappeared. We were just under the radar for a while,” says Chief Executive Officer Marc Lasky, who has headed the Henderson (Nev.) company since 2008. He says the prevalence of such technologies as online chat, FaceTime, mobile text messaging, and social networking has created an environment in which psychic services can thrive online and on mobile devices rather than rely on phone lines. “It’s all about timing,” he says.

The Psychic Friends Network, founded in 1990, had about 3,000 psychics at its height and earned about $1 billion through the 1990s, says Lasky, the 44-year-old son of founder Mike Lasky. The company’s 30-minute commercials—directed and produced by the younger Lasky—were at one point the second-highest-grossing infomercial on television after Jane Fonda’s fitness video infomercial, reported The Baltimore Sun. Then competition, poor management decisions, and conflicts with phone companies and customers about over-billing led the company to bankruptcy in 1998. Mike Lasky bought back the assets for $1.85 million in 1999 and won $4.1 million from MCI in a settlement in 2004….

Learn more at http://www.businessweek.com/articles/2012-04-19/psychic-friends-network-goes-public

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