Monday, September 26, 2005
Intermix Rejects Bid By Former CEO
Los Angeles-based Intermix Media, operator of the popular MySpace.com social networking site, today said that its board of directors has rejected a proposal by former Chariman and CEO Brad Greenspan to acquire the company. The company said that it has reaffirmed its recommendation that shareholders vote in favor of the company's pending acquisition by News Corporation. Intermix reported that it had received a letter from Greenspan on Friday proposing a cash acquisition of Intermix at a price of $13.50 per share. The company said that it felt the proposal by Greenspan "does not constitute, and is not reasonably be expected to lead to, a transaction that is superior to the News Corporation transaction." The firm cited several factors in its rejection, including its uncertainty relating to financing the transaction. Greenspan had cited that the over $300M in funds would come from undisclosed private equity investment firms. Intermix also said that the return of Greenspan to a control position could create morale issues with a significant number of Intermix employees. Greenspan has been aggressively asking shareholders to reject the News Corp. takeover of Intermix, claiming that the deal undervalues MySpace.com and rewards management at the expense of shareholders.