U.S. Markets close in 11 mins
  • S&P 500

    4,310.45
    +13.31 (+0.31%)
     
  • Dow 30

    34,191.26
    +278.82 (+0.82%)
     
  • Nasdaq

    13,120.41
    -7.64 (-0.06%)
     
  • Russell 2000

    2,020.74
    -0.61 (-0.03%)
     
  • Crude Oil

    86.36
    -3.05 (-3.41%)
     
  • Gold

    1,774.90
    -6.50 (-0.36%)
     
  • Silver

    20.12
    -0.15 (-0.75%)
     
  • EUR/USD

    1.0169
    +0.0004 (+0.0407%)
     
  • 10-Yr Bond

    2.8240
    +0.0330 (+1.18%)
     
  • Vix

    19.58
    -0.37 (-1.85%)
     
  • GBP/USD

    1.2091
    +0.0033 (+0.2708%)
     
  • USD/JPY

    134.2190
    +0.9470 (+0.7106%)
     
  • BTC-USD

    23,909.03
    -133.34 (-0.55%)
     
  • CMC Crypto 200

    567.78
    -4.14 (-0.72%)
     
  • FTSE 100

    7,536.06
    +26.91 (+0.36%)
     
  • Nikkei 225

    28,868.91
    -2.87 (-0.01%)
     
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Visa and Mastercard suspend Pornhub ad payments

In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Yahoo Finance's Alexandra Semenova explains the controversy around Visa and Mastercard payments to Pornhub and how investor Bill Ackman has put pressure on the companies over governance issues.

Video Transcript

[MUSIC PLAYING]

BRIAN SOZZI: Visa and Mastercard are suspending payments to adult video website Pornhub and its parent company following a lawsuit and pressure from hedge fund manager Bill Ackman. Let's bring in Yahoo Finance's Alexandra Semenova, who has the latest on this. Alex.

ALEXANDRA SEMENOVA: Yeah, guys, Visa and Mastercard on Thursday said that they would suspend payments to Traffic Junky, which is the advertising arm of MindGeek, the parent company of Pornhub. This comes amid a lawsuit that has raised the question around the role that payment processors play in facilitating the distribution of child pornography, which is apparently very prevalent on these websites.

Now, both Visa and Mastercard suspended payments for direct content on the website in 2020. But they continue to generate advertising revenue from these websites. Now Visa CEO Al Kelly said that the company would suspend Traffic Junky's Visa acceptance until further notice. Visa cards will not be able to be used to purchase advertising on any of these websites.

Last Friday, a federal judge in California denied Visa's motion to be dismissed in this lawsuit, which was filed by a young woman who alleges that Visa played a role in the distribution of a video of her when she was 13 years old, a sexually explicit video of her. The ruling found that, quote, "Visa made the decision to continue to recognize MindGeek as a merchant despite its alleged knowledge that MindGeek monetized child porn." Very damaging ruling there if you read through it.

Now, pretty unusual for a company to be responding this way, as this is still ongoing, and Visa still has to present its side. But this comes amid mounting pressure on Visa, particularly from hedge fund manager Bill Ackman, who has been on this case for two years. He's been publicly urging Visa to stop accepting payment for this ad revenue. He called this one of the most egregious corporate governance failures that he has ever witnessed.

BRIAN SOZZI: Interesting. And I know you got more on the Yahoo Finance page on this one. Alexandra Semenova, thanks so much.

ALEXANDRA SEMENOVA: Thank you.