SAN FRANCISCO - PlanetOut Inc. has signed a binding letter of intent allowing 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, and the transaction is expected to close on or before August 31.
The PlanetOut portions to be acquired by here! include Out, The Advocate, The Out Traveler, HIVPlus, SpecPub Inc. titles (Men, Freshmen, Unzipped and [2]) and book publisher Alyson Publications.
"We are extremely pleased that here! Networks will be the new parent company for our publishing business," said PlanetOut Inc. chief executive officer Karen Magee. "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," Magee added. "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."
Jarchow and Colichman said in a statement, "In adding PlanetOut's magazine and book-publishing groups 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."
Magee also said PlanetOut Inc. is continuing to work with New York-based financial-planning company Allen & Company LLC to explore strategic alternatives with respect to its core online businesses.
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