Feeds

MySpace founder loses court case over News Corp sale

But vows to appeal

The next step in data security

A judge has dismissed MySpace founder Brad Greenspan's claims that the sale price of the social networking site to News Corporation was too low. Greenspan said he will appeal.

Greenspan founded MySpace and is a former chief executive of its parent company Intermix. He filed a suit in February claiming that News Corp's $580m purchase of Intermix did not value the business highly enough, claiming that the company's officers acted out of a desire for personal gain above the interests of the shareholders.

Superior Court judge Carolyn Kuhl dismissed Greenspan's claims, saying that the acquisition was legal and the decision taken by Intermix board members was legitimately taken, according to Fox Interactive, the division of News Corp which looks after MySpace.

"News Corporation and Fox Interactive Media feel vindicated by Judge Kuhl's ruling," said Mike Angus, Fox Interactive Media's general counsel in a statement.

Last week Greenspan published a demand that an investigation be conducted into the sale by the US financial regulator the Securities and Exchange Commission, the United States Department of Justice, and the United States Senate Committee on Finance.

"News Corp's valuation has increased by $12bn since the transaction occurred just one year ago, and there are several independent analysts today that agree that MySpace is worth tens of billions of dollars,” Greenspan said in that statement.

See: Greenspan's claims

Copyright © 2006, OUT-LAW.com

OUT-LAW.COM is part of international law firm Pinsent Masons.

Choosing a cloud hosting partner with confidence

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Bono: Apple will sort out monetising music where the labels failed
Remastered so hard it would be difficult or impossible to master it again
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.