Taking Stock In Smut

Displaying naked greed, Internet porn sellers are heading for Wall Street

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Warshavsky isn't exactly a Northwest Hugh Hefner, although he has accumulated some nice toys. He lives in an expensive condo decorated with Asian antiquities, across the street from his expansive downtown-Seattle office suite. "I don't live like the average 26-year-old," he admits. His latest purchase: a Porsche 911 Cabriolet to go along with his Jaguar and speed boat. He grew up in Seattle, and entertained neighborhood kids with magic tricks, including one in which an audience member put a coin in a varnished box. Warshavsky then made the coin disappear.

It's a business model working well in electronic form, with PCs replacing the box. Offers and suggestions pour in to this Internet freak show. "We are always working on ways of getting controversial material," says Warshavsky, who weeds out legitimate offers--relatively speaking, of course--from the cranks and seeks his next lucrative magic trick.

Just in case the smut repels prospective investors, Warshavsky is diversifying into myriad online properties, including a gambling site, a psychic site and a site prescribing Viagra. He has often repeated his mantra of aspiring to be the Sumner Redstone of New Media (referring to the chairman of giant Viacom), but as it stands, he remains closer to being the Internet's Larry Flynt.

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