PlanetOut Inc., parent company of The Advocate and Out magazines, announced Wednesday that it had entered into a binding letter of intent with an affiliate of here! Networks to acquire PlanetOut's magazine and book publishing businesses. A definitive agreement is expected to be finalized by April 30, and the transaction is expected to close on or before August 31.
"We are extremely pleased that here! Networks will be the new parent company for our publishing business," PlanetOut CEO Karen Magee said in the press release. "Here! Networks cofounders 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 important, 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."
"In adding PlanetOut's magazine and book publishing group to our television, film, and online media properties, we continue the LGBTQ legacy that the men and women of PlanetOut have built and nurtured," Jarchow and Colichman said in a joint statement. "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." (The Advocate)
