By Mike Groll | 07.11.2015 | 06:29:07The video game giant Porno announced on Wednesday that it is buying the video-sharing service video-rental app Vevo for $20 billion.
The company’s stock is up more than 200% this year as a result of the deal.
Porno is a video game company, with games such as World of Warcraft, StarCraft and Diablo.
In addition to video games, Porno has a line of erotic and bondage videos and clothing.
The deal is expected to help Porno diversify into other video-on-demand services, and the company is expected in a second quarter earnings report on Wednesday.
Porno has been struggling to stay afloat as it struggles to make money from its video-based entertainment business.
Last year, the company’s earnings per share fell 17% as its revenue per user dropped more than 50%.
The acquisition of Vevos comes at a difficult time for the company.
It was founded in 2009 by Mark Pincus, a former Apple employee who left the company last year.
Pincu, now CEO of Porno, was also an early investor in Zynga, a gaming company, and then Zyngas acquisition of Twitch.
Pincus has said that he is looking to make more money in the next two years by selling his shares in Porno.
He is also looking to acquire more companies to take on, including online game maker Valve.