(RTTNews) - PlanetOut Inc.
(LGBT), a media and entertainment company exclusively serving the lesbian, gay, bisexual and transgender community, said Wednesday that it has entered into a binding Letter of Intent to sell its magazine and book publishing businesses to an affiliate of here! Networks in order to focus on its core online businesses.
The deal includes marketing commitments, cash payments, and the assumption of the majority of the operating liabilities and assets of the business by here!, and commitments by PlanetOut to provide certain marketing and advertising services to here! Networks and here! films.
PlanetOut's digital media brands include Gay.com, PlanetOut.com, Advocate.com, Out.com, OutTraveler.com and HIVPlusMag.com. The company's print media brands include The Advocate, Out, The Out Traveler and HIVPlus, as well as SpecPub, Inc. titles.
A definitive agreement is expected to be finalized by April 30 and the deal is expected to close on or before August 31, San Francisco, California-based PlanetOut said in a statement.
Additionally, PlanetOut said it is continuing to work with Allen & Co. to explore strategic alternatives concerning its core online businesses.
PlanetOut shares closed Wednesday's regular trading session at $2.27, down 46 cents or 16.85%.
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