Los Angeles Superior Court Promptly Dismisses Ousted Euniverse CEO Brad Greenspan's Legal Challenges to News Corporation's Acquisition of Intermix/MySpace
LOS ANGELES --(Business Wire)-- A Los Angeles Superior Court judge summarily rejected legal challenges to News Corporation's 2005 acquisition of Intermix Media, Inc., then parent company of the wildly popular lifestyle portal, MySpace. The legal challenges had been spearheaded by Brad Greenspan, the former Chairman and CEO of Euniverse (renamed Intermix Media by the new management), who was ousted by Euniverse's board of directors in 2003, nearly two years before the acquisition, while MySpace was still in its infancy and in beta testing.
On Friday, October 6, 2006, Superior Court Judge Carolyn B. Kuhl fully dismissed Greenspan's and the other former shareholders' challenges to the News Corp. acquisition, finding that the acquisition was lawful and ratified by the fully informed vote of a majority of the Intermix shareholders.
"News Corporation and Fox Interactive Media feel vindicated by Judge Kuhl's ruling and have always believed that this is merely a situation of unchecked envy leading to a loss of common sense," said Mike Angus, General Counsel of News Corporation's Fox Interactive Media. "We hope this ruling will finally put an end to Mr. Greenspan's repeated and unsubstantiated attacks and look forward to focusing our attention on continuing to strategically grow our business."
Richard Rosenblatt, the former CEO of Intermix and former Chairman of MySpace, who replaced Greenspan, responded to the ruling, saying, "I have exercised great restraint in not responding to Mr. Greenspan's baseless and defamatory claims about the propriety of the News Corp. acquisition and my role in the transaction, with the expectation of being vindicated by a court of law. Lost in all the rhetoric is that we delivered to the shareholders, including Mr. Greenspan, a nearly 700% increase in stock price."
About Fox Interactive Media
A division of News Corp. (NYSE:NWS)(NYSE:NWS.A), Fox Interactive Media (FIM) is an integrated network of sites offering socially rich media experiences centered on entertainment, news, information and self-expression. The company's network includes Internet assets from News Corp., including the highly trafficked Foxsports.com (http://www.foxsports.com), Americanidol.com (http://www.americanidol.com) and Fox.com (http://www.fox.com). FIM also owns and operates such category leaders as MySpace.com (http://www.myspace.com), the number one social networking site on the Web; Scout.com (http://www.scout.com), a dynamic collegiate and pro sports network; and IGN Entertainment (http://www.ign.com), a network of leading gaming and entertainment sites, including men's lifestyle site AskMen (http://www.askmen.com) and premier destination for movie-goers Rotten Tomatoes (http://www.rottentomatoes.com), among others.