To the consternation of the members of PlanetOut, which caters to LGBT, the company has admitted that it is on the way out and is now looking for another orbit to connect itself to, figuratively speaking. The easiest way out for this social networking site is being sold off.

PlanetOut has already sold RSVP Vacations a while back in efforts to minimize costs and focus on what the company does best. It seems to have worked on the very short term, given the signs however; PlanetOut’s survival seems to be in the hands of another company willing to buy it off.

Allen & Co., which has been contacted by the company in looking for ways to deal with its constraints, sent out a warning that even a sale may not be possible because its revenues has been on a downhill slope.

Larger companies have started taking on the development and maintenance of sites catering to a specific sub-culture or segment of the society. In fact, MTV has also ventured into the social networking of LGBT. This may partly explain the reduced revenues of PlanetOut. But then, again, websites in particular and the Internet in general is evolving so much that anyone unable to compete is dropped from the race.

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