Gay and lesbian media portal PlanetOut Inc. agreed to sell its magazine and book publishing business to Here Networks for $6 million in cash.
San Francisco-based PlanetOut signed a letter of intent with Regent Releasing, an affiliate of New York-based Here, which is a gay and lesbian television network. A formal agreement should be done by April 30 and the deal should close by August 31. The price in the letter of agreement is $6 million, with $1 million coming on April 30 or sooner, if the agreement is finished earlier. Other $1 million payments will be made on the 15th of the month from May through September.
The letter, signed by PlanetOut CEO Karen Magee and Regent CEO Paul Colichman states: "The funds shall be treated as prepaid advertising, to be applied as the marketing occurs." The ads must run by March 31, 2009.
Regent also agreed to pay $500,000 in cash as a put/call payment when the deal closes.
PlanetOut publishes magazines like Out and Advocate, but wants to return its focus to its web sites gay.com and planetout.com, which have been contributing a smaller percentage of its revenue recently.