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PlanetOut sells its publications
PlanetOut sells its publishing businesses for $6 million US
"We will protect and expand these iconic brands with integrity, passion and commitment"
PlanetOut has officially agreed to sell its magazine and book publishing businesses to an affiliate of here! Networks $6 million US.
The San-Francisco-based company, Planet Out, has signed a letter of intent with Regent Releasing. Affiliate of the New York City based company Here (owner of Gaywired Media), Regent Releasing, is a gay and lesbian TV network.
The agreement is expected to be finalised by April 30 and the transaction is scheduled for close by August 31.
As a result of this deal Planet Out, the parent company of well-known LGBT magazines The Advocate and Out publications, will concentrate on its online properties.
"We are extremely pleased that here! Networks will be the new parent company for our publishing business," said Karen Magee, Chief Executive Officer, PlanetOut who co-signed the agreement.
"Here! Networks Co-Founders Stephen P. Jarchow and Paul Colichman have long been admirers and strong supporters of The Advocate and Out, and we believe that our magazines, their associated websites and Alyson books will thrive under here!'s ownership."
Jarchow and Colichman promised to respect the enduring legacy of the PlanetOut properties.
"In adding PlanetOut's magazine and book publishing group to our television, film and online media properties, we continue the LGBTQ legacy that the men and women of PlanetOut have built and nurtured," said Jarchow and Colichman.
"We recognise the responsibility and opportunity that LGBTQ media has in making a meaningful and positive impact on society and culture.
"We will protect and expand these iconic brands with integrity, passion and commitment."
In the recent past the company’s online contingent has been contributing less to its overall revenue each year while the publications portion has increased.
In 2005 their online publications accounted for 87 per cent, in 2006 54 per cent, and in 2007, 51 percent. While the magazine revenue from 13 per cent in 2005 to 46 per cent in 2006 and 49 percent in 2007.
However PlanetOut is also apparently ‘continuing to work with Allen & Co. to explore other sale options for the company.’
In January the company hired Allen & Co to help strategise the next steps for the PlanetOut which included the possible sale. Allen & Co is on a three year contract PlanetOut and continues to look at other options for the company.
The decline of the company has been steady. By December 31, 2007 the accumulated deficit had been reported as $89.5 million US and in February PlanetOut reported a loss of $51.2 million in 2007.
