SAN FRANCISCO, CA  --  Gay media flagship PlanetOut Inc, which owns Gay.com, PlanetOut.com, The Advocate, Out Magazine, etc., continues to struggle and may be forced to sell the company to the highest bidder.

The company has retained Allen & Co. LLC to "evaluate strategic alternatives," including a possible sale of the company, after reporting losses for seven consecutive financial quarters.

According to financial website Seeking Alpha, "For the first nine months of 2007, PlanetOut reported a loss of $33.1 million on revenues of $39.8 million. The company last July raised $26.2 million in equity financing from a group of investors that included Special Situations Funds, Cascade Investment LLC, SF Capital Partners, PAR Investment Partners LP and Allen & Co. It sold its its travel business, RSVP, to Atlantis Events Inc. for an undisclosed sum in October, a little more than a year after acquiring it. Trading at $6.20 on Monday, PlanetOut has a market capitalization of $25.4 million. With such a cheap price and obvious appeal as a provider of information to a niche market, PlanetOut should be able to find a buyer, unless its finances scare everyone off."

Last update: 01-15-2008 19:05