SAN FRANCISCO, CA  --  Gay and lesbian media company PlanetOut Inc., owner of such media properties as Gay.com, Out magazine, and Advocate magazine, reported a loss of $51.2 million for 2007. This is a huge increase from 2006, when the company lost $3.7 million.

Sales for the San Francisco based company fell to $53 million for 2007, down slightly from 2006 sales of $58.8 million.

In adition to Gay.com, Advocate.com and Out.com, PlanetOut Inc. also owns other web properties, as well as book publisher Alyson Publications. The company recorded a $25.9 million charge for impairment of goodwill and intangible assets in 2007, which contributed to its loss.

"In January, PlanetOut hired Allen & Co. to help it with its strategy, including a possible sale of the company. PlanetOut agreed to pay Allen & Co. "in the event of a successful transaction" and also gave it 10-year warrants for up to 75,000 shares of its stock at $6.20 a share.

"PlanetOut also agreed to cash payments for its interim chief financial officer and its chief technology officer if they don't leave the company before the end of 2008. Daniel Steimle, the interim CFO, would be paid $100,000 and CTO Bill Bain $50,000 under the deal," San Francisco Business Times writes.

Last update: 03-03-2008 19:08