News Corp. to Acquire Intermix Media

Jul 18, 2005  •  Post A Comment

Just days after announcing the creation of a new interactive division, Rupert Murdoch’s News Corp. agreed Monday to acquire Intermix Media for $580 million in cash.

Intermix is an Internet-based company that runs, among other things, the MySpace.com Web site, a leading lifestyle Internet portal for social networking. The company also has more than 30 other Web sites, which will be folded into News Corp.’s newly formed Fox Interactive Media unit.

In a separate transaction, Intermix announced that it is exercising its option to acquire the 47 percent of MySpace.com that it did not already own. Also, News Corp. said it reached an agreement with Intermix’s largest shareholder, venture capital firm VantagePoint Venture Partners, to vote its shares, which represent 22.4 percent of Intermix, in favor of the deal.

The Intermix transaction comes just three days after News Corp. announced the formation of Fox Interactive Media, which seeks to leverage the Fox entertainment news and sports brands across the Internet.

News Corp. said its definitive agreement with Intermix calls for News Corp. to pay the equivalent of $12 a share for the company. The transaction is expected to close in the fourth quarter.

Richard Rosenblatt, Intermix’s CEO, and MySpace CEO Chris DeWolfe will continue in their roles after the deal closes, reporting to Ross Levinsohn, president of Fox Interactive Media.