Bob Guccione, who founded Penthouse magazine in the 1960s and built a pornographic media empire that broke taboos, outraged the guardians of taste and made billions before drowning in a slough of bad investments and Internet competition, died Wednesday in Plano, Texas, The Associated Press reported. He was 79.

A statement issued by the Guccione family says he died at Plano Specialty Hospital after a long battle with cancer, AP said.

It began in London in 1965 with a bank loan, an idea and an accident. The loan was for $1,170. The idea was a new magazine with nude photos to outdo Hugh Hefner’s Playboy. And the accident was an old mailing list, so that promotional brochures with pornographic samples went out to clergymen, schoolgirls, old-age pensioners and wives of members of Parliament.

The outcry was huge. And there was a $264 fine for mailing indecent materials. But all 120,000 copies of the first issue of Penthouse sold out in days, and Guccione, a struggling artist from New Jersey who had been knocking around Europe for more than a decade, was on his way to being a tycoon.

By the early 1980s, he was one of America’s richest men, king of a $300 million publishing empire, General Media, which owned Penthouse, with a monthly circulation of 4.7 million in 16 countries, and 15 other magazines, including Omni and Penthouse Forum as well as titles on bodybuilding, photography and computers, in addition to book, video and merchandising divisions.

Forbes listed Guccione’s net worth in 1982 at $400 million. Guccione looked the part of the libidinous pornographer. He was tanned and muscled, and he wore slim pants and silk shirts open to the waist, showing gold chains on a hairy chest. His personality was volatile, but he did not drink, smoke or use drugs.

Robert Charles Joseph Edward Sabatini Guccione was born in Brooklyn on Dec. 17, 1930, the son of Anthony and Nina Guccione. He was raised Roman Catholic in Bergenfield, N.J., and said he considered the priesthood, but decided to be an artist. At 18, he married the first of his three wives, Lilyann Becker, and had a daughter, Tonia. The marriage soon failed.

Over the next 12 years, he traveled in Europe and North Africa, sketching tourists in cafes and working odd jobs. In Tangier, he met Muriel Hudson, an English singer. They traveled together for several years, were married in 1955 and had four children: Bob Jr., Nina, Anthony and Nick. In 1960, they settled in London, where he ran a dry-cleaning business, drew cartoons for a syndicate and edited a small newspaper. A mail-order business, selling back issues of men’s magazines, put him deep in debt, and his wife left him, taking the children. But Penthouse transformed his life.

With Kathy Keeton, a dancer from South Africa who was his girlfriend, his business partner and later his wife, Guccione challenged Playboy at the height of the sexual revolution, introducing Penthouse in the United States in 1969 and building it into one of the nation’s most successful magazines, a mix of what was billed as “sex, politics and protest” that took in an estimated $3.5 billion to $4 billion over 30 years.