PlanetOut On The Ropes Again

PlanetOut, parent company of Out, Advocate, Gay.com, is looking for a financial savior again.

Struggling gay and lesbian media and entertainment company PlanetOut Inc.LGBT] late Monday said it has retained Allen & Company LLC to assist it in evaluating strategic alternatives, including a possible sale of the company.

For the first nine months of 2007, PlanetOut reported a loss of $33.1 million on revenues of $39.8 million. The company last July raised $26.2 million in equity financing from a group of investors that included Special Situations Funds, Cascade Investment LLC, SF Capital Partners, PAR Investment Partners LP and Allen & Co. It sold its its travel business, RSVP, to Atlantis Events Inc. for an undisclosed sum in October, a little more than a year after acquiring it.

Trading at $6.20 on Monday, PlanetOut has a market capitalization of $25.4 million. With such a cheap price and obvious appeal as a provider of information to a niche market, PlanetOut should be able to find a buyer, unless its finances scare everyone off.

Last year PlanetOut sold their cruise division, RSVP, to Atlantis Events and unloaded SpecPubs, their adult magazine business. In July, Bill Gates bought a 56% controlling stake in the company.