In three of the four recorded incidents the seal let the penguin go. But on one of the more recent occasions, the seal killed and ate the penguin after trying to mate with it.
Seals discovered having sex with penguins
Fur seals have been caught engaging in an extreme form of sexual behaviour. Specifically, trying to have sex with penguins
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ugh.
First otters, then this.
So this is what goes on in the baby seals club.
and occasionally eat their 'partner' after.