MySpace founder loses court case over News Corp sale

But vows to appeal

By OUT-LAW.COM • Get more from this author

Posted in Music and Media, 12th October 2006 08:28 GMT

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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

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