Ruling dismisses challenge from former Euniverse CEO
NEW YORK — News Corp. disclosed Monday it has received good news from an L.A. judge, who has thrown out a challenge to its acquisition of MySpace parent Intermix Media in 2005.
Ruling, from Superior Court judge Caroline Kuhl, dismissed a challenge from former Euniverse CEO Brad Greenspan, who claims that directors of Intermix had undervalued the company ahead of its $580 million sale to News Corp.
In an emailed statement, Greenspan said he intends to appeal the judge’s ruling, saying Kuhl had failed to take into account new information that had come to light since the lawsuit was first filed. The new information, in the form of emails and documents, showed that accurate revenue figures were not made available to Intermix stockholders before they voted on the sale, Greenspan said.
Greenspan, who ran Intermix when it was still called Euniverse, alleged that directors had not acted in the interests of the shareholders. He said the company was worth many billions more than News Corp. had paid.
Greenspan, who at one time was the company’s largest shareholder but left his position at top exec in 2003, has been fighting News Corp. in the courts since earlier this year. In 2005 he lost out to News Corp. in an attempt to acquire the company outright.
News Corp. was strong in its reaction to the ruling, calling the suit a case of “unchecked envy” and characterizing the plaintiff’s moves as “repeated and unsubstantiated attacks.”
Greenspan recently set up a venture-capital firm that will invest in social networking and other entertainment business in Asia.