Troubled gay media company PlanetOut (NASDAQ:LGBT) has agreed to merge with Regent Entertainment, the pair announced Friday.

Losses have been mounting for PlanetOut since 2006 when it acquired gay cruise line RSVP. But a little more than a year later, RSVP found itself being sold off to Atlantis Events Inc. for an undisclosed sum. In April, the company decided to sell-off its magazine holdings consisting of gay monthlies The Advocate and Out to Regent Releasing – the film studio arm of New York-based LGBT cable channel here! – for $6 million.

The San Francisco-based company, parent company of gay online market leaders and, faced possible Nasdaq delisting in August when it announced that it had accumulated a deficit of nearly $100 million.

The agreement merges PlanetOut with Here Networks LLC and Regent Entertainment Media Inc. The new privately held company, called Here Media Inc, is to be helmed by Stephen Jarchow. Here Networks CEO Paul Colichman will be its CEO, while PlanetOut Chairman Phil Kleweno will sit on the new company's board.

“We believe that the strategic fit between PlanetOut and Here Media, and the complementary nature of these respective businesses, their client bases, and their audiences, will result in a combined company with greater financial and market strength than either business on its own,” PlanetOut CEO Karen Magee, who took over the company reins in July 2006 from Lowell Selvin after he resigned for health reasons, said in a statement.

“This business combination will unite a powerful broadband video solution with an iconic brand and a leading URL in the LGBT community,” said Colichman. “We are extremely excited about the opportunity to leverage this exceptional collection of assets to expand our audience, grow our revenues, and increase stockholder value.”

Here Media and its owners said they will infuse $4.7 million into the new company. The companies hope to finalize the deal, which is subject to regulatory and PlanetOut shareholder approval, by the end of the second quarter.