Greenspan Comes Back For More

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CNET reports that Brad Greenspan, the founder of Intermix Media (MySpace) which was sold to News Corp for $580 million last year, is seeking a federal investigation into the sale. He claims that Intermix shareholders were defrauded by almost $20 billion. Greenspan accuses a former Intermix CEO of hiding the real growth data from the shareholders “to present a distorted financial picture and execute a deal quickly.”

According to Greenspan, “He [Intermix CEO] knew it was worth billions of dollars, he was able to pass it off to News Corp to get a sweetheart deal for himself.”

Greenspan claims that according to internal company reports, MySpace revenue grew 1,289 percent annually from December 2003 through June 2005.

After Yahoo made a $1 billion offer to acquire Facebook, a popular student-oriented social network, it became apparent that the sale of MySpace for $580 million was a huge mistake. Analysts are estimating the value of MySpace at somewhere around $20 billion.

About the Author

Andrey Milyan was the first editor-in-chief of Search Marketing Standard, the leading print publication covering the search marketing industry. He has been following and reporting on industry developments for over 10 years. Andrey now works in the paid search sector of a prominent search marketing agency.

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