SAN FRANCISCO - The long, grueling saga of PlanetOut Inc. appears to be drawing to a close. The LGBT media company announced Thursday it has completed its merger with Here Networks LLC and Regent Entertainment Media Inc. to form a new public entity known as Here Media Inc.
PlanetOut serves the lesbian, gay, bisexual and transgender community through its websites, Gay.com and PlanetOut. Here Networks is a cable and satellite television provider of programming services including movies, series, documentaries and other content specially tailored for the LGBT community. Regent Entertainment Media is the publisher of magazines directed to the LGBT community including The Advocate, Out and HIV+. All three companies will retain their identities as subsidiaries of the new corporation.
Stephen P. Jarchow will serve as chairman of the new entity, with Paul Colichman as chief executive officer. The board of directors for the new company initially will consist of Mr. Jarchow, Mr. Colichman and Phil Kleweno, PlanetOut's chairman.
"Following a very thorough review of all of the strategic alternatives available to us and the proposed transaction, our board concluded that the opportunity to combine with Here Networks and Regent Entertainment Media was in the best interests of PlanetOut's stockholders," said PlanetOut CEO Karen Magee. "We believe the strategic fit between PlanetOut and Here Media, and the complementary nature of these respective businesses, their client bases and their audiences, will result in a combined company with greater financial and market strength than either business on its own."
Colichman, CEO of Here Networks, added, "This business combination will unite a powerful broadband video solution with an iconic brand and a leading URL in the LGBT community. We are extremely excited about the opportunity to leverage this exceptional collection of assets to expand our audience, grow our revenues and increase stockholder value."
The merger is subject to the affirmative vote of the holders of a majority of the outstanding shares of PlanetOut common stock, regulatory filings and approvals, and certain other closing conditions. The parties hope to close the transaction in or before the second quarter of 2009.
