Dissidents Fight News Corp Over MySpace
The former CEO of MySpace parent Intermix wants his old company to discard Rupert Murdoch's takeover bid.
Brad Greenspan, who formerly helmed Intermix, led an investor group to offer $13.50 per share in an effort to gain majority control of the company. MediaPost reports that the Intermix board has rejected Mr. Greenspan's contention the company is worth more.
"Selling to News Corp. is not in the best interests of Intermix's shareholders or MySpace's 30 million registered members," he said in the report. News Corp has proposed a $12 per share deal, valuing the entire company at over $580 million.
Mr. Greenspan contends social networking site MySpace by itself is worth that amount. His investor group, FreeMySpace, has been working to gain enough shareholder votes to reject the deal.
The Intermix board, which has already moved its special shareholder meeting to September 30, wants no part of Mr. Greenspan's proposal:
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."
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