Following its April sale of Out and Advocate print magazines to Here, a New York-based gay television network, debt-ridden Planet Out today said it agreed to merge with Here and Regent Entertainment, forming Here Media Inc.
As part of the agreement, Here Networks and Regent will contribute at least a combined $4.7 million into the new company. Planet Out will become a subsidiary of Here Media. The merger is expected to close before the second quarter.
Here CEO and founder Paul Colichman will serve as CEO of the new company. Stephen P. Jarchow will serve as chairman. It was not immediately clear if Planet Out CEO Karen Magee would transition to Here Media.
In April, Planet Out sold Out and Advocate to Here for a reported $6 million. The company’s Web portals—gay.com and planetout.com—were not part of the deal.
Through the first nine months of 2008, Planet Out reported a net loss of $43.1 million, compared to a loss of $14.1 million during the same period in 2007.
The merger agreement remains subject approval by the majority of outstanding Planet Out stockholders. Allen & Company served as financial advisor to Planet Out in the merger.