News Corp. announced that it is buying Intermix Media for about $580 million in cash. Intermix is also buying the part of MySpace.com that it doesn’t already own.
News Corp.’s new Fox Interactive Media unit will be getting over 30 sites from both MySpace.com and Intermix. This is expected to cause News Corp.’s U.S. web traffic to nearly double.
“Intermix’s brands, such as MySpace.com, are some of the web’s hottest properties and resonate with the same audiences that are most attracted to Fox’s news, sports and entertainment offerings,” said Murdoch. “We see a great opportunity to combine the popularity of Intermix’s sites, particularly MySpace, with our existing online assets to provide a richer experience for today’s internet users.”
The deal is expected to reach completion in the fourth quarter, and is subject to certain customary conditions including approval of the Intermix common and preferred stockholders.
News Corp. has entered into a voting agreement with VantagePoint Venture Partners, the largest stockholder of Intermix, in which VantagePoint will vote in favor of the transaction.
“We are very excited to combine our unique Internet reach and assets with one of the most exciting media companies in the world. We look forward to continuing to lead the market in unique content, social networking, and analytical marketing,” said Intermix CEO Richard Rosenblatt. Mr. Rosenblatt and MySpace CEO, Chris DeWolfe will remain in their current positions after the deal is completed.
Chris is a staff writer for murdok. Visit murdok for the latest ebusiness news.
