According to the company, both studios, along with Naked Sword and the GunzBlazing affiliate program will form, "The single largest all male erotic production company in the world."
The new unit will be run collectively by Tim Valenti, head of Naked Sword, Brian Randall who honchos Gunzblazing and Chris Ward who heads up the Falcon/Raging Stallion arm.
Current Falcon Studios President James Hansen will stay on as chief financial officer.
Employees of both studios will be integrated into a single staff responsible for the production of nearly 60 new titles per year and more than 40 compilation titles.
The current Falcon Studios membership site will remain in the Next Door Entertainment network while the current Raging Stallion sites will remain part of GunzBlazing, according to the company.
DVD distribution channels for both companies will remain the same. All titles from both studios are available for viewing at NakedSword.
"We are all really excited by this merger," Ward said.
He added, "Falcon and Raging Stallion are two of the top gay brands and merging means we will be able to produce some really good porn. Falcon has a huge history and I cannot even begin to express what this means to me personally and professionally. We will raise the bar to new heights, achieving more together than either company could on its own. I look forward to working with James and the entire Falcon staff as we move forward into the next decade."
Hansen said, "This is the beginning of an exciting new chapter for both Falcon Studios and Raging Stallion. Combining the iconic libraries of both studios will offer consumers one of the largest and highest quality catalogs to choose from. Putting the two companies' incredibly talented staffs together will bring tremendous creativity and even higher production standards for what is already some of the best quality adult features in the marketplace."
The combined company brings together 12 major DVD lines, each of which will maintain its own branding.
"Our intent is to keep each of the important Falcon and Raging Stallion brands as individual entities, each with their own look and feel," Ward said.