News Corp. announced it will buy Intermix Media Inc., owner of MySpace.com social networking site, for $580 million. News Corp. also announced the creation of Fox Interactive Media, an online hub for its Fox news, sports and entertainment programming.
In June 2005, New York Attorney General Eliot Spitzer accused Intermix of practicing in hidden spyware. Intermix agreed to a $7.9 million settlement suit without admitting wrong doing.
Intermix's MySpace.com is a popular social networking site that has a large young adult demographic.
"With the acquisition of Intermix Media, News Corp. is more than tripling its reach among U.S. internet users. By adding MySpace to their portfolio, News Corp. has now positioned itself as a market leader in the social networking arena, as well as increasing its exposure to the teenage market," says Erin Hunter, senior vice president, comScore Networks.
The News Corp. deal is expected to close in the fourth quarter of calendar 2005.
News Corp. has named Ross Levinsohn, former senior vice president of Fox Sports Interactive Media, as president of the new Fox Interactive Media.
According to a MySpace company statement, "MySpace has changed the way people live their lives both online and off, and our commitment to our 22 million members remains unchanged. MySpace will continue to create new ways to connect people online and to maintain a unique environment where our users can creatively express themselves. With this acquisition, MySpace will be able to accelerate its growth plans and expand into new markets."
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