SAN FRANCISCO, April 9 /PRNewswire-FirstCall/ -- PlanetOut Inc. , 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.
About PlanetOut Inc.
PlanetOut Inc. is a leading media and entertainment company exclusively serving the lesbian, gay, bisexual and transgender (LGBT) community.
PlanetOut's digital media brands include Gay.com, PlanetOut.com, Advocate.com, Out.com, OutTraveler.com and HIVPlusMag.com. PlanetOut print media brands include The Advocate, Out, The Out Traveler and HIVPlus, as well as SpecPub, Inc. titles. Transaction services brands include e-commerce Web sites Kleptomaniac.com and BuyGay.com, and book publisher Alyson Publications.
PlanetOut, based in San Francisco with additional offices in New York and Los Angeles, offers advertisers access to what it believes to be the most extensive multi-channel, multi-platform network of gay and lesbian people in the world. For more information, please visit http://www.planetoutinc.com/.
Forward-Looking Statements
In addition to the historical information contained herein, this press release contains forward-looking statements, including statements regarding PlanetOut's commitment to sell its publishing business, marketing relationship with Regent, and other strategic transaction plans, as well as statements containing the words "believes," "anticipates," "expects," and similar words. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the company's limited operating history and variability of operating results; competition; timing of product launches; success of its marketing efforts; and the company's dependence on technology infrastructure and the Internet. Additional information concerning factors that could affect PlanetOut's future business and financial results is included in the company's Annual Report on Form 10-K for the year ended December 31, 2007 and other public filings filed from time to time with the Securities and Exchange Commission (SEC), which are available at the SEC's website at http://www.sec.gov/.
