PlanetOut Inc. on
Wednesday purchased the assets of LPI Media
Inc.--including the magazines The Advocate and
Out and related Web sites--for $31.1 million.
The move creates the world's largest media company serving
gay men and lesbians. It also nearly doubles
PlanetOut's estimated 2005 pro forma revenue,
according to a company press release.
Francisco-based public company paid $24 million in
cash and $7.1 million in seller-financed debt for the
assets of Los Angeles-based LPI Media.
PlanetOut said it will also reimburse certain prepaid
and other expenses totaling about $1 million.
will further advance our strategy of building a
far-reaching media and entertainment company which
aggregates the largest gay and lesbian media brands,"
said Lowell Selvin, chairman and chief executive
officer, PlanetOut Inc. "This combination provides a
larger, more diverse foundation for additional growth,
particularly in our advertising business, as it
becomes a larger percentage of our overall revenue,
and it enables us to better reach the markets we serve,
driving higher growth in a more cost- effective manner.
Besides, this is one gay marriage the laws do allow!"
Out and The Advocate are the two
largest-circulation LGBT magazines in the United
States. LPI distributes more than 8.2 million copies of its
magazines each year.
traded as the symbol LGBT, closed up 5.6% on Wednesday,
at $7.51 per share. (Advocate.com)