News Corp. sells off MySpace sib sites

Demand buys up casual gaming, diversionary sites

News Corp. has let go of MySpace’s many sibling sites that came as part of its $580 million acquisition of the social networking powerhouse last summer.

In a deal believed to be worth a few million dollars, conglom sold most of the assets of MySpace parent company Intermix Media to Demand Media, a Web startup headed by former Intermix CEO Richard Rosenblatt.

Purchase includes a number of Web sites focused on casual games and other diversionary content.

Former Fox Interactive Media topper Ross Levinsohn talked about plans for some of the sites after buying Intermix last summer, but his unit ended up putting all its energy into the fast-growing MySpace, as well as other Netcos in its portfolio.

As a result, most of the Intermix sites were left without resources and lost traffic.

“These assets weren’t vital to our long-term plan, and selling them to an interested third party made the most sense from both a strategic and financial perspective,” an FIM rep said in a statement.

Rosenblatt said he will apply “Web 2.0” technology, such as user-generated content and social networks, to relaunch some of the Intermix sites. He plans to start with gaming site Grab.com and “how-to” Web site SoYouWanna.com.

As part of the deal, Fox Interactive can continue to use the technology behind Grab.com on its own sites and gets a perpetual, royalty-free license to all games on the Intermix Web sites.

News was first reported on weblog PaidContent.org

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