Former Intermix CEO Battles News Corp. Acquisition
The announcement was an unambiguous rebuff of FreeMySpace LLC, an investor group that attempted to prevent News Corp.'s acquisition of MySpace last week by offering to acquire a significant stake in Intermix Media. Brad Greenspan, Intermix's largest non-insider stockholder and one-time CEO, is leading the group of private equity investors who offered shareholders $13.50 a share to become "the significant stockholders" in Intermix.
Intermix said Monday that the "unsolicited proposal from its former chairman and chief executive officer Brad D. Greenspan does not constitute, and is not reasonably expected to lead to, a transaction that is superior to the News Corporation transaction."
FreeMySpace said Greenspan would file a proxy statement with the Securities and Exchange Commission to solicit proxies from Intermix shareholders to vote against the News Corp. deal.
"Selling to News Corp. is not in the best interests of Intermix's shareholders or MySpace's 30 million registered members," said Greenspan, who added that he believed the social networking site MySpace alone was worth more than $580 million.
"The company has tremendous growth potential based on its deep relationship with users, which is what all the big Internet companies are willing to pay so much money for today," Greenspan said.
Under the terms of the FreeMySpace proposal, Intermix stockholders will be able to sell up to 50 percent of their shares at their option, and will also retain equity participation, according to a FreeMySpace statement confirmed by Greenspan. FreeMySpace said the proxy would also seek to have Intermix defer its scheduled stockholder meeting.
The special meeting of stockholders to vote on the News Corp. deal, which Intermix originally said it would hold on Wednesday, has been moved back to Friday, Sept. 30.
Recent Online Media Daily Articles
-
New Stanford Initiative Helps Browser Developers Refine Cookie-Blocking June 19, 7:35 p.m.
Privacy advocates at Stanford on Tuesday unveiled a new initiative that could pave the way for ... -
Facebook Aims To Simplify Page Analytics June 19, 5:52 p.m.
In its latest step to simplify advertising and marketing on Facebook, the company on Wednesday announced ... -
Powley Tapped As iCrossing CEO June 19, 5:32 p.m.
Catching agency watchers off guard, Don Scales is stepping down as CEO of iCrossing, effective immediately.Stepping ... -
Twitter Gets Social With Viacom June 19, 5:21 p.m.
Twitter took another step Wednesday toward supporting television. The social-media company signed a partnership with Viacom ... -
Digital, Alternative Media Revs Forecast To Hit $436B By 2017 June 19, 3:01 p.m.
Various types of mobile marketing and advertising accounted for nine of the top 10 fastest-growing digital ... -
Acquisitions Flourish, Google To Seek Equity Firm To Further Deals June 19, 1:24 p.m.
Google is considering alliances with private-equity firms to help structure acquisition deals, but the tech company ... -
Millennial Expands Video Ad Options June 19, 11:44 a.m.
Mobile ad network Millennial Media is stepping up its video ad offerings with the launch of ... -
CIMM Issues Request For Data, Cross-Platform Metrics June 19, 9:29 a.m.
The Coalition for Innovative Media Measurement (CIMM) said it has issued a request for proposals involving ... -
Heads Or Tails: Facebook Grows A Long One, Surpasses 1 Million Advertisers June 19, 7:48 a.m.
Facebook has reached an important ad industry milestone, becoming one of the few mega platforms to ... -
Consumer Action: Most Web Users Want Control Over Tracking June 18, 8:20 p.m.
Most Web users have expectations about privacy that appear to be at odds with current practices ...
Be the first to comment on "Former Intermix CEO Battles News Corp. Acquisition"
Leave a Comment