According to the RT con report at edittorrent, Red Sage is looking for "longer (over 40k, but especially 70-100k) stories for our e-books program, M/M of any length for our e-books program, and resumes for acquisitions editors."
Having just had a quick look at the Red Sage website and particularly the submissions guidelines, I'm really not getting the feeling that m/m is welcome, let alone desired, so make of that what you will. They do take shorts, which interests me strangely as I have a couple of short pieces more suited to the erotic romance than the gay erotica market. I'd be tempted to test the water with a couple of shorts. On the other hand, I'm not convinced that those cover prices are appropriate for very short pieces -- it doesn't feel like value for money when I put my reader hat on. And I'd rather not annoy potential readers who might have otherwise gone on to buy longer stuff.
(Seen via Storm Grant.)