Merger to Create LGBT Media Powerhouse

January 9, 2009 World Screen

SAN FRANCISCO, January 9:
PlanetOut, Here Networks and the publisher Regent Entertainment Media have
signed a definitive merger agreement to create Here Media, providing content
for and about the lesbian, gay, bisexual and transgender community.

The transaction will be
effected through a contribution by the owners of Here Networks and Regent
Entertainment Media (the group behind magazines such as The Advocate and Out) of those businesses and a minimum of $4.7 million of cash into Here
Media, a newly formed holding company. PlanetOut will concurrently be merged
with a wholly owned subsidiary of Here Media. Following the contribution and
the merger, all three companies will be subsidiaries of Here Media. The parties
hope to close the transaction in or before the second quarter of 2009.

Stephen
P. Jarchow, the chairman of the board at Regent Entertainment, will serve
as chairman of Here Media, and Paul
Colichman, the CEO of Here Networks, will be CEO. The board of directors of
the new company will initially consist of Jarchow, Colichman and Phil Kleweno,
PlanetOut's chairman.

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"Following a very
thorough review of all of the strategic alternatives available to us, and the
proposed transaction, our board concluded that the opportunity to combine with
Here Networks and Regent Entertainment Media was in the best interests of
PlanetOut's stockholders," said Karen Magee, PlanetOut's CEO. "We
believe that the strategic fit between PlanetOut and Here Media, and the
complementary nature of these respective businesses, their client bases, and
their audiences, will result in a combined company with greater financial and
market strength than either business on its own."

"This business
combination will unite a powerful broadband video solution with an iconic brand
and a leading URL in the LGBT community," added Colichman. "We are
extremely excited about the opportunity to leverage this exceptional collection
of assets to expand our audience, grow our revenues and increase stockholder
value."

—By Kristin
Brzoznowski