News
2006-06-30
PlanetOut Inc.
announces company-wide integration plan
In a move toward
greater consolidation and operational efficiency
following its purchase of LPI Media Inc., owner of The
In a move toward
greater consolidation and operational efficiency
following its purchase of LPI Media Inc., owner of The
Advocate and Out magazines, last November,
and RSVP Vacations in January, PlanetOut Inc.
announced Thursday the completion of a company-wide
acquisition integration plan. The publicly
traded company (Nasdaq: LGBT) also announced the
appointment of Jeff Soukup as president, in addition to his
current role as chief operating officer.
“This plan
is about leveraging our synergies and fueling for additional
growth,” said Karen Magee, chief executive officer
for PlanetOut Inc. “We are now even better
positioned to execute our strategic plan, broaden our
market penetration, and extend our reach within the LGBT
community. We are also delivering on our commitment to
integrate LPI and RSVP and streamline the business
where appropriate. Specifically, we are consolidating
media and advertising services, e-commerce services, and
back-office operations on a global basis."
The head count
reduction related to the integration of services and
business units, along with other organizational changes,
will reduce PlanetOut’s total workforce by
approximately 5%. Restructuring costs and one-time
charges associated with these moves are expected to total
approximately $1.3 to $1.5 million, which will be taken
primarily during the second quarter of 2006.
In connection
with these integration steps, PlanetOut also announced that
Mark Elderkin, president and founder of Gay.com, and Donna
Gibbs, senior vice president, consumer marketing and
commerce, will be leaving the company. “Mark
and Donna have both played key roles in helping the
company grow and achieve critical milestones, including our
IPO,” Magee said. “We are indebted to
them for their many important contributions to
PlanetOut as it defined its path and claimed its leadership
position.” (The Advocate)
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