Wednesday, November 09, 2005

PlanetOut buys LPI

Big News: PlanetOut is buying LPI, the publishers of two of the nation's largest gay publications OUT and The Advocate. The deal is estimated to be worth about $31 million.

Another example of the growing importance of the GLBT market...

SAN FRANCISCO, November 9, 2005 -- PlanetOut Inc. (Nasdaq: LGBT) today announced that it has acquired substantially all of the assets of LPI Media Inc., and affiliated direct marketing and publishing entities for $24.0 million in cash and approximately $7.1 million in seller-financed debt. PlanetOut will also reimburse certain prepaid and other expenses totaling approximately $1.0 million.

LPI, a privately-held company, is the nation's leading publisher targeting the gay and lesbian market, distributing more than eight million copies of its magazines each year. LPI publishes The Advocate and OUT, which are the two largest circulation LGBT magazines in the U.S., as well as the acclaimed Web sites, and related e-commerce sites. PlanetOut intends to finance the cash portion of the purchase price with cash on hand.
PlanetOut expects this acquisition to be accretive, with LPI 2005 annual revenues for its consolidated entities currently estimated to be approximately $29.0 million.

More info: