Bob Guccione dies; he founded Penthouse

DALLAS - Bob Guccione, who founded

Penthouse

magazine and created an erotic corporate empire around it, only to see it crumble as his investments soured and the world of pornography turned toward video and the Internet, died yesterday. He was 79.

A statement issued by the Guccione family says he died at Plano Specialty Hospital in Plano. His wife, April Dawn Warren Guccione, had said he had battled lung cancer for several years.

Penthouse reached the pinnacle of its popularity in September 1984, when it published nude pictures of Vanessa Williams, the first black Miss America. Williams, now a singer and actress, was forced to relinquish her crown after the release of the issue, which sold nearly 6 million copies and reportedly made $14 million.

A frustrated artist who once attended a Catholic seminary, Guccione started Penthouse in 1965 in England to subsidize his art career and was the magazine's first photographer. He introduced the magazine to the American public in 1969 at the height of the feminist movement and the sexual revolution.

Penthouse quickly posed a challenge to Hugh Hefner's Playboy by offering a mix of tabloid journalism with provocative photos of nude women, dubbed Penthouse Pets.

Guccione estimated that Penthouse earned $4 billion during his reign as publisher. He was listed in the Forbes 400 ranking of wealthiest people with a net worth of about $400 million in 1982, and built a corporate empire under the General Media umbrella.

Guccione and longtime business collaborator Kathy Keeton, who later became his third wife, also published more mainstream fare, such as Omni magazine, which focused on science and science fiction. Keeton died of cancer in 1997 following surgery, but Guccione continued to list her on the Penthouse masthead as president.

Guccione lost much of his personal fortune on bad investments and risky ventures.

Probably his best-known business failure was a $17.5 million investment in the 1979 production of the X-rated film "Caligula." Malcolm McDowell was cast as the decadent emperor of the title, and the supporting cast included Helen Mirren, John Gielgud and Peter O'Toole.

Distributors shunned the film, with its graphic scenes of lesbianism and incest. However, it eventually became General Media's most popular DVD.

Guccione also lost millions on a proposed Atlantic City casino. He never received a gambling license and construction of the casino stalled.

Married four times, Guccione had a daughter, Toni, from his first marriage and two sons, Bob Jr. and Nick, and a daughter, Nina, from his second marriage.

April Guccione said services will be private