Additional Information


Content

News Corp takeover of MySpace could be hit by lawsuit

NEW YORK - Rupert Murdoch's plans for world domination of the internet have hit a snag, with news that shareholders in MySpace.com owner Intermix Media have launched a lawsuit to try to stop its $580m (£321m) takeover by News Corporation.

Share this article

The suit has been filed by lawyers Kreindler & Kreindler in Los Angeles, and alleges that the directors of Intermix, owner of MySpace.com, engineered the sale to News Corp so that it benefited themselves at the expense of public shareholders.

It says that the $12-a-share price offered for Intermix is "glaringly inadequate and unfair". It also says that the company's directors have not undertaken all the necessary steps to maximise stockholder value.

Kreindler & Kreindler's Gretchen Nelson described the actions of the Intermix board as "unconscionable".

"Our investigation has revealed that other prominent companies expressed interest in advancing more attractive acquisition proposals, only to be given the cold shoulder by the self-interested defendants," she said.

MySpace.com has seen growth of 400% over the past year, and in April it received more hits than Google.

News Corporation is buying Intermix as part of a $2bn internet spending spree. It is also reported to be interested in acquiring the search firm Blinkx and gaming company IGN Entertainment.

If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the Forum.

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus

Additional Information

Latest jobs Jobs web feed

FROM THE BLOGS

The Wall blogs

Back to top ^