As Gay Media Brings In Business, PlanetOut Struggles

DOW JONES NEWSWIRE -- June 28 -- Though corporate interest in the gay dollar may be on the rise, Planet Out struggles. Their stock price is down from the IPO price of $9 (Oct. 2004) to $1.30 today. The company faces stiff competition from other media outlets, and its online business and recent acquisitions, such as RSVP Vacations, aren't performing as expected. The company is now considering strategic options, says CEO Karen Magee. She won't say whether the company is for sale, but said it may sell its adult entertainment business. PlanetOut faces stiff competition in the gay media market. Although the company doesn't own a TV network, Viacom Logo network, NBC's Bravo and Here! Networks all have Web operations. Various blogs and lifestyle sites have also popped up, like AfterEllen.com and AfterElton.com, newcomer GLEE and Queerty, social-networking sites Manhunt.net, Adam4Adam.com and OurChart.com.