Unsolicited Offer for Intermix Fails to Knock News Corp. out of the Running

Sep 26, 2005  •  Post A Comment

News Corp. appeared to survive a competing bid for Intermix Media Monday after Intermix rejected an unsolicited offer for the company from its former CEO.

The former executive, Brad Greenspan, late last week said he was forming an investor group he called FreeMySpace LLC to offer Intermix shareholders $13.50 a share for a significant interest in Intermix. The offer was seen as a premium over the $12-a-share bid that News Corp. has on the table to buy all of Intermix in a deal valued at $580 million.

However, Intermix officials in a statement issued Monday said Mr. Greenspan’s offer “does not constitute and is not reasonably expected to lead to a transaction that is superior to the News Corp. transaction.” As such, Intermix rejected the Greenspan offer.

Mr. Greenspan had argued that News Corp.’s offer significantly undervalued Intermix, which owns the popular social-networking Web site MySpace.com.