We’ve been covering the ups and downs of PlanetOut.com and today the company announced that it sold 56% of its shares for about $26.2M.
The company’s market cap hovers below $30M.
Don’t expect a massive spike though, while that implies a valuation of some $50M, the firm has a large debt load and is losing money ever since it began to adventure in the print business. While the influx of ad dollars was welcome, the heavy costs thereof were not.
The company also indulged in travel services, which strategically is sound, but in practice held the company back from benefitting from the hype surrounding pure-play online media firms.
Still, this is one company I like, the fundamentals of the macro market are very strong, whether or not we need a gay oriented media remains to be seen.
I’m not gay - not that there is anything wrong with that, by my gut says: yes, there is a room for LGBT-oriented publications more than ever. If you want to know what I mean, read my first post here.
Related:
- LGBT: Oh, that explains it.
- M&A Targets: LGBT
- Does media need to be gay? Why is LGBT in the dumps?
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