Isn't the multi-culti niche supposed to be the one bright spot in the tsunami that is media revenue? Perhaps not. Since its incorporation in December 2000, PlanetOut — operator of Gay.com, Kleptomaniac.com, and, before selling them off, RSVP Vacations and Out and The Advocate magazines — has lost a total of $99.8 million. In 2007, CEO Karen Magee was paid, in salary and bonuses, a total of $522,600 for helping the company lose only $51.2 million that year. [SF Biz Times]
There are new details on Regent Entertainment’s bid to buy The Advocate and Out.
San Francisco Business Times informs us that Regent, which owns gay network here!, gave PlanetOut an initial $500,000 to seal the deal, but the final sale will total $6 million in cash - far cheaper than we anticipated.
It’s been a little over two months since gay media giant PlanetOut put itself on the auction block. So, what’s happening with the company?
First and foremost, book wholesaler Bookazine snatched up a piece of the company’s Publishers Distributing Company, which includes Bruno Gmunder Verlag and Starbooks Press.
Meanwhile, PlanetOut’s magazines, including The Advocate and Out, remain the big mystery, with sources telling us more people were interested in a buy than executives anticipated.
BEING GAY IS HARD ON THE WALLET Perennially-troubled gay media company PlanetOut Inc. reports a $51.2 million loss for 2007. Part of that sum is a "$25.9 million charge for impairment of goodwill and intangible assets" and could somebody PLEASE EXPLAIN WHAT THE HELL THAT MEANS. [SF Biz Times, Queerty]
• Despite the insistence of George Contanza, double-dipping really is like "like putting your whole mouth right in the dip."
• If you're L.A., be sure to check out the weed vending machines. CONTINUED »
PlanetOut Partners is in a financial free-for-all, but that hasn't kept them from lifting Out magazine editor-in-chief Aaron Hicklin to the umbrella gig as editorial director for the whole company. Queerty exclusively brings news that Hicklin will be running all of the gay media company's operations, including, effectively, The Advocate. Perhaps it's just a stepping stone to give Hicklin full control of that floundering mag … or to help shutter it? Either way, there's talk of "Web 2.0"-izing hook-up site Gay.com and PlanetOut.com, which probably means they'll add Digg.com buttons to their stories.
• There's a video going around that's completely gross, totally NSFW and offensive to animal rights activists. One aficionado called it "the most horrible thing I've ever seen." That said, it has the potential to be the next 2 Girls 1 Cup, so here it is.
• Eddie Murphy had a lot more faith in the power of love as Prince Akheem than he does in real life.
• Jessica Alba cares for the environment, but that doesn't mean we have to care for her. CONTINUED »
• Hillary Clinton as Tracy Flick? Yeah, we could see that.
• Speaking of Hill, the ex-first lady will appear on Tyra on Friday. Wonder what vote she's going after …
• A Williamsburg meat hole closes, and Gothamist has the best headline: "Pies 'n' Thighs Goes Tits Up." CONTINUED »
Bob Cohen, chief of Out and The Advocate publisher LPI Media, has just been let go. LPI's parent, PlanetOut Inc., has been drowning in financial problems as you might recall. But then Bill Gates came and saved the day with his checkbook. Well, except Bob Cohen's day.
The memo from PlanetOut's CEO Karen Magee below. CONTINUED »
Gay rag The Advocate, which Bill Gates just saved from certain death, is making good on those cosmetic changes it promised us. As Queerty first told us:
With the September anniversary issue, The Advocate will roll out a more vivid, sophisticated look under the direction of Luke Hayman, who recently redesigned Time and New York. It will feature a modern sans-serif logo and typeface, uncoated cover stock and bright, color-coded departments. “We feel now that we’ve got a design that reflects a mission to curate the news,” [editor Anne] Stockwell said.
Or, as the Times's Justin Jones points out, The Advocate is just doing away with the wrapper that covers the magazine when sent to subscribers, hiding the title … in case you don't want your neighbors to know you're a big 'mo.
It's The Advocate's way of, ahem, "coming out of the closet." It's also the Times way of completely ignoring, failing to mention, or even acknowledging this might be little more than a cost-saving measure.
PlanetOut Inc. has the world's richest person to thank for bailing it out from its financial troubles. None other than Bill Gates, through his Cascade Investment, is among the investors who sunk $26 million to save the flailing gay media conglomerate, which publishes magazines Out and The Advocate, porn titles Freshmen and Unzipped, and operates RSVP Vacations and Gay.com, publisher Alyson Books, and sells raunchy DVDs.
It's only a matter of time before searches for "gay porn" on MSN.com turn up PlanetOut's MenMachine.com.
We didn't actually think Out and The Advocate were at risk of folding — but spun off as an independent company? The possibility crossed our minds.
But never mind with all that! Their cash-strapped parent, PlanetOut Inc., just announced it secured $26.2 million in some type of financial arrangement that might be classified as, um, a sale? Queerty tries to suss things out; we remain confused. But alas, Out's Aaron Hicklin will still have his monthly underwear model budget. Rejoice!
Those gay magazines Out and The Advocate are not in trouble of imploding, despite reports! In addition to The Advocate undergoing some cosmetic changes to save itself, there's hope on the horizon. (Well, let's put "hope" in quotes.)
In between pointing its feet toward Jesus, Queerty relays this statement of clarity from PlanetOut, which owns LPI Media, publisher of those rags.
PlanetOut Inc.’s first major hurdle in its uphill climb toward fiscal solvency is just days away. After posting a $6.9 million loss the first quarter of this year, the company’s lender set June 30 as the date by which it must raise at least $7 million—with another $8 million to come by August 31.
That's June 30, as in tomorrow (when our attention will be on Janice Min, of course). It's going to be mildly amusing when they don't reach those cash infusion goals, especially since the gays are just so affluent these days.
Whenever we get the chance to roll in the hay with our gay cuz Queerty, we take it. And thanks to the misfortunes of PlanetOut Inc. – owner of Gay.com, Out, The Advocate, and RSVP Vacations – we're getting laaaaaaid! As Queerty was among the first to report, PlanetOut's outlook hasn't been so rosy. Sinking share price. Execs selling off stock. Cash strapped operations.
Now Queerty brings word that the situation is even more dire. Reports in the SF Gate claim that without a cash infusion, PlanetOut will run out of dolla dolla bills by the end of the year. It's not just hard out there for a pimp; it's hard out there for a gay media conglomerate who thought its well-lubed infrastructure would help cut costs and boost profit.
Meanwhile, during a recent interview with Out editor-in-chief Aaron Hicklin, we were assured that the future of his magazine was safe. He wouldn't comment on the LGBT ticker symbol's troubles, but his glossy rag is, supposedly, treading water just fine.
You know, the glossy rag that's loaded with ads for its parent company's RSVP Vacations — the same RSVP Vacations that's being blamed for much of PlanetOut's woes. Not that all the guys who used to cruise Gay.com are now on MySpace, Facebook, and Dlist or anything.
Just when you thought media couldn't get any gayer – or smaller – Out magazine and Gay.com prove that you don't know shit about media.
Late yesterday, PlanetOut Partners (which runs online cruising sites like Gay.com and PlanetOut.com) announced its purchase of LPI Media (which publishes skin mags like Out and Out Traveler). Big deal, right? Well, the deal does create the world's largest gay media company — or so the press release claims, as we're pretty sure Gawker Media is rivaling them for that title.
- Purchase price of $31.1 million, plus reimbursement of certain prepaid and other expenses.
- Expected to nearly double PlanetOut's estimated 2005 pro forma revenue and to substantially diversify its revenue mix among advertising, subscription and transaction businesses.
- Combines the largest gay and lesbian media brands and a complementary advertiser base.
- Addresses advertisers' desire to target the gay and lesbian market with multi-media marketing and sponsorship programs.
- Spans a portfolio of platforms, including PlanetOut's leading network of Web sites, the largest circulation LGBT national magazines, local and national events, direct mail lists, plus PlanetOut's new video streaming and mobile services.
- Leverages LPI's award-winning content across multiple platforms and PlanetOut's unparalleled reach and direct marketing strength to build a more efficient subscriber sales channel for LPI.
And just when you thought the gaying of the media was enough, we're hearing whispers that Heeb and JDate.com want to get in on the action.
PlanetOut Inc. Acquires LPI Media Inc., Publisher of The Advocate and OUT [Yahoo]
Editorial Director
