Business News
PlanetOut Inc. Enters Into Binding Letter of Intent for Sale of Publishing Business
Thursday 10. April 2008 - Sale will enable company to focus on core online properties
PlanetOut Inc. (NASDAQ:LGBT), a leading media and entertainment company exclusively focused on the gay and lesbian market, today announced that it has entered into a binding Letter of Intent with an affiliate of here! Networks to acquire PlanetOut’s magazine and book publishing businesses. The transaction includes marketing commitments, cash payments, and the assumption of the majority of the operating liabilities and assets of the business by here!, and commitments by PlanetOut to provide certain marketing and advertising services to here! Networks and here! films. A definitive agreement is expected to be finalized by April 30, 2008, and the transaction is expected to close on or before August 31, 2008.
“We are extremely pleased that here! Networks will be the new parent company for our publishing business,” said Karen Magee, Chief Executive Officer, PlanetOut Inc. “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.”
“Most importantly, we believe that the divestiture of our publishing businesses will enable PlanetOut Inc. to devote all of our attention and resources to our core online businesses, GAY.COM and PlanetOut.com. This will ensure that all of our powerful brands have a better chance to grow and prosper, and will ultimately produce greater value for our shareholders.” added Magee.
“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. We recognize 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,” said Jarchow and Colichman.
“The structure of this transaction was carefully designed to benefit PlanetOut Inc., here! Networks, our customers, our advertising partners, and our shareholders. Paul and I plan to work closely together over the coming months to provide the smoothest possible separation and transition of these businesses,” continued Magee. “In addition, we are looking forward to the opportunity to utilize PlanetOut Inc.’s extensive reach into the influential LGBT market to promote the theatrical release of an exciting collection of here! films.”
Magee also stated that PlanetOut Inc. is continuing to work with Allen & Co. to explore strategic alternatives with respect to its core online businesses.