Debt-Ridden Publisher Sells Magazines, Keeps Web Sites
Planet Out unloads Out, Advocate for $6 million, holds on to Gay.com.
Debt-ridden Planet Out Inc., the gay and lesbian publisher, has agreed to sell its magazine and book publishing businesses to Here, a New York-based gay television network.
The dealâ€”which includes gay titles Out and Advocateâ€”is valued at $6 million, according to the San Francisco Business Times, where Planet Out is based.
"We believe that the divestiture of our publishing businesses will enable [us] to devote all of our attention and resources to our core online businesses," Planet Out CEO Kevin Magee said in a statement accompanying the deal announcement.Â
In February, Planet Out reported a $51.2 million loss for 2007.
Interestingly, the company's revenue split has seen a decline in the online segment and an increase in its print revenue. In 2005, online revenue accounted for 87 percent of the total, according to the paper. In 2006, Web revenue accounted for 54 percent; in 2007 51 percent.
Planet Outâ€”which employs 237â€”has offices in both New York and San Francisco.