Ex-Intermix CEO Brad Greenspan still hasn’t gotten over the sale of his former company, the parent firm of MySpace, to Rupert Murdoch’s News Corp.
Greenspan rankles at the thought of News Corp’s bargain-basement pickup of Intermix Media, and he is now suing his former company, VantagePoint Venture Partners, for breach of fiduciary duty by those directors who greenlighted the $580 million sale.
AP & Dow Jones reported on Greenspan’s legal complaint, and provided some choice comments from the former CEO of Intermix who was fired in October 2003:
“News Corp. functioned as the ‘escape hatch’ for a band of individuals, including Vantage Point, which had effectively picked the pocket of Intermix shareholders in a series of self-serving transactions,” Greenspan said.
“It is unbelievable that News Corp. obtained a property that is half the size of Google and Yahoo … for the ridiculous sum of $580 million.”
Greenspan said in an interview that he believes that MySpace could have fetched a price in the “tens of billions of dollars” in a proper auction. He noted the $2.2 billion market value of CNET Networks Inc., which has fewer unique visitors than MySpace.
At issue is VantagePoint’s alleged role in the sale. Greenspan cited communications between the venture capital firm and a member of the Intermix board of directors, Richard Rosenblatt, as evidence of improper conduct.
The report also noted a previous lawsuit filed by Greenspan against Intermix was dismissed last year. A current lawsuit by former Intermix shareholders over the sale of the company to News Corp is also making its way through the courts.
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David Utter is a staff writer for murdok covering technology and business.
