SAN FRANCISCO, Calif. — After weeks of rumors, PlanetOut Inc. has announced it will sell its magazine and book publishing divisions to here! Networks. Included in the deal are nationally-respected LGBT news magazine The Advocate and popular lifestyle/entertainment monthly Out.
The deal between the two companies was announced Apr. 9 after PlanetOut signed a letter of intent with here!-owned affiliate Regent Releasing. A formal agreement will be finalized by Apr. 30.
According to the San Francisco Business Times, the deal should close no later than Aug. 30. PlanetOut is selling the magazines for $6 million in cash, with $1 million due by Apr. 30.
PlanetOut is seeking to focus more of its corporate attention on its online properties Gay.com and PlanetOut.com. Recently, the company entered into a deal with Expedia.com to let the latter handle travel bookings through its sites. In December, PlanetOut sold its vacations company, RSVP Vacations.
PlanetOut also owns Specialty Publications, which publishes adult magazines Men, Freshmen,  and Unzipped. The company has sought to sell its adult properties, but has been unable to do so.
The consulting firm Allen & Co. is currently working with PlanetOut, assisting with corporate strategy. The agency was hired in January 2008, fueling rumors that parts of PlanetOut could be sold.
Among those rumors were that Window Media, owner of The Washington Blade and The Southern Voice, would enter a bid to purchase The Advocate and Out.
At the end of 2007, the 237-employee PlanetOut corporation had a financial deficit of almost $90 million.
Correction: Due to an error in reporting from various outside sources, Q-Notes mistakenly reported the PlanetOut sale of Advocate and Out would not include PlanetOut’s adult entertainment publications. According to journalist Rex Wockner the mag sale to here! Network’s Regent Releasing will include SpecPub, Inc. which owns Men, Freshmen and Unzipped. The out-of-print ‘s trademark is also in the deal.