News Corp. to Buy Intermix Media for $580 Million

[Ryan V]

Media conglomerate News Corp. today agreed to buy Los Angeles-based Intermix Media Inc., which controls the popular social networking website MySpace.com, for $580 million in cash.

MySpace and Intermix's rapidly growing portfolio of more than 30 websites have been hailed by investors for attracting millions of young Internet users as well as advertisers to a virtual environment featuring music, blogs and other online features. But Intermix has also been sued for spreading hidden spyware to the millions of people who visit its sites.

Intermix will become part of News Corp.'s new Fox Interactive Media unit. The addition of Intermix's 27 million monthly users will more than double Fox Interactive's online audience.

"Intermix's brands, such as MySpace.com, are some of the web's hottest properties and resonate with the same audiences that are most attracted to Fox's news, sports and entertainment offerings," said News Corp. Chairman Rupert Murdoch in a statement. "We see a great opportunity to combine the popularity of Intermix's sites, particularly MySpace, with our existing online assets to provide a richer experience for today's internet users."

Under the transaction, News Corp. will acquire Intermix common stock at $12 a share in cash. In a separate deal, Intermix exercised its option to acquire the 47% of MySpace.com it did not own.

Shares of Intermix jumped nearly 10% today on the American Stock Exchange.

"We look forward to continuing to lead the market in unique content, social networking and analytical marketing," said Richard Rosenblatt, Intermix Media's chief executive officer, in a statement.

Rosenblatt and Chris DeWolfe, chief executive officer of MySpace.com, will retain their jobs when the acquisition is completed.

MySpace.com has become the Internet's most visited social-networking site. Its U.S. users looked at 3.9 billion pages in May.

Each new page seen gives the company a chance to sell more ads. Only Web giants Yahoo Inc. and Microsoft Corp. displayed more online ads in May than MySpace, according to research firm Nielsen/NetRatings.

But MySpace.com's success has been tainted by legal problems at its corporate parent, Intermix.

In April, in the first effort by a state to curb spyware, New York Atty. Gen. Eliot Spitzer sued Intermix for spreading malevolent programs inside games and screensavers available on its sites.

Intermix said it had already stopped distributing programs mentioned in the lawsuit and blamed much of the situation on "prior leadership."

However, in June, the company, without admitting any wrongdoing, agreed to pay $7.5 million to settle the charges.

http://www.latimes.com/business/la-071805i...-home-headlines

[tktino]

thats biggg money! Newscorp is the main media of the world~