* A correction has been made to this story.
San Francisco – PlanetOut, a media company focused on the LGBT community that publishes The Advocate and OUT magazines, and operates Gay.com, has announced plans to effect a one-for-ten reverse stock split.

Companies typically carry out such transactions to reduce the number of overall shares, and in turn increase the share price.

San Francisco-based PlanetOut has seen its share price drop from around $4.50 a year ago to hover closer to $1.50 in recent months.

The troubled company was rescued from bankruptcy in July by an investor group that included Bill Gates, and is undergoing a restructuring that has recently seen the departure of CFO Daniel Miller, as well as Bob Cohen, chief of its top magazine titles.

PlanetOut expects to enact the reverse split on or near Oct. 1.

*This story originally incorrectly stated that PlanetOut CEO Karen Magee had also stepped down from the company. Additionally, it incorrectly referred to departing magazine chief Bob Cohen as Bob Allen. And to clarify, Bill Gates' Cascade Investment participated in the company's funding, but did not lead it. We sincerely apologize for the errors.

Related Links:
http://biz.yahoo.com/prnews/070904/aqtu210.html?.v=5

http://www.pinknews.co.uk/news/articles/2005-5261.html

http://www.planetout.com