sold my position in LGBT because a doubled investment in a month is good enough for me.  It was a small position, but glad I found this one and will be hoping it goes back down for a trade.

Interesting timing there:

PlanetOut Sells It All (Finally) To Here Networks/Regent Entertainment

Friday January 9, 12:07 am ET

By Tameka Kee Troubled lesbian, gay, bisexual and transgender (LGBT)-centric media company PlanetOut has finally found a buyer of sorts. The company is merging with here! Networks , which develops original *LGBT* content for cable, satellite TV and the web, and media holding company Regent Entertainment to form Here Media. Regent and Here will pump roughly $4.7 million into the new company; PlanetOut will eventually become a subsidiary of the forthcoming entity. Here Networks' CEO and founder Paul Colichman will serve as chief executive of the new company. No word on what role PlanetOut CEO Karen Magee will play.

It's been a long time coming for PlanetOut (NasdaqGM: LGBT - News ). It has been on the block since last January. And this isn't the first time the company has dealt with Here Networks/Regent. PlanetOut sold its magazine and book publishing businesses to Here in April 2008 for $6 million. That deal gave Here/Regent ownership of The Advocate, Out and HIVPlus.

Terms of the merger reflect the dire financial straits PlanetOut was in: the company's shareholders will receive one share of Here Media's common stock as well as a share of "special stock"—for a 20 percent stake in the new company. In contrast, Here Media and Regent's owners will get common stock only—and an 80 percent stake in the company. The "special stock is being issued to provide a limited form of downside protection in the event of a liquidation, dissolution or winding up of Here Media ..." Or an outright sale of the company within for years of the merger for too low a price. You can read more details in this mind-boggling release .

...so let me get this straight:

shareholders get nothing but paper ....a guaranteed first 20% of $4.00 - which is .80 - IF the company is to liquidate... and of course having 20% of voting rights leaves them powerless in that potential process (and clearly they will never liquidate when executive salaries come first)...

meanwhile, shareholders get 20% of a company whose financials are PRIVATE which apparently will have 4.7 million cash pumped in, or .23 on the dollar (20% of 4.7 million).  The company could be in debt, have loads of cash, nobody knows...

So you get a very small piece of an untradable private company that's impossible to value other than the fact that they are "pumping in" 4.7 million cash of which 20% or .23 - in a sense - goes to the LGBT shareholder ...on paper (and as an added bonus, shareholders are guaranteed the current share price in the event of a liquidation)

Wow, I didn't even know this kind of thing was legal!  And I bet you this CEO Karen Magee probably got a lucrative employment agreement.

I wonder if the reason they are not announcing details is to let the angry shareholders sell off their shares.  If they had just done this immediately and halted trading, I think shareholders would vote this down.  Seems like they are trying to drive down the price to buy back as much as they can cheap and approve the transaction.

This looks sooooo dirty no wonder I'm losing faith in the market!

wait.  the $4.00 thing is this: if "Here Media" goes under $4.00/share in a liquidation scenerio, planetout shareholders get special priority in liquidation over the common shareholders, but not necessarily over preferred shareholders.

but god only knows what $4 actually represents, so it's a pretty worthless description.

without more details you can only assume this is a scam.

Keep in mind, if you do your research, youll find out that the people buying planetout are the same people that left planetout a few years back in the first place.   I wonder if bill gates knew of this merger when he gave millions of dollars to planetout this past fall to help them out AGAIN.