July 6, 2007
Bill Gates Helps Bail Out Gay.com
David Foucher READ TIME: 1 MIN.
Earlier this week, San Francisco's PlanetOut Inc. announced it had raised $26.6 million from private investors-a sum the struggling gay media company hopes will be enough to help it out of financial crisis.
Interestingly, Microsoft's main man, Bill Gates, seems to be one of those "private investors"-his Cascade Investment arm was named alongside Special Situations Funds, SF Capital Partners, PAR Investment Partners LP and Allen & Co. LLC as purchasers of 22.8 million shares of PlanetOut stock.
Cascade Investments previously has invested in Six Flags, Four Seasons Hotels and Pacific Ethanol.
PlanetOut, owner of Gay.com and two magazines, The Advocate and Out, went public at $9 per share in October 2004. Since that time, the stock has dropped dramatically-at one point falling as low as $0.86 per share (it currently sits at $1.59).
The company's expansion away from its media roots (including its involvement in RSVP Cruises) has received some of the blame for its recent woes. Outdated technology and declining advertising sales have been cited as well.
David Foucher is the CEO of the EDGE Media Network and Pride Labs LLC, is a member of the National Lesbian & Gay Journalist Association, and is accredited with the Online Society of Film Critics. David lives with his daughter in Dedham MA.
