News Corp buys MySpace parent company for $580 million

News Corporation announced it will acquire Intermix Media, Inc. for $12 a share, or approximately $580 million in cash. Intermix is the parent company of, a popular social networking and blogging service with over eighteen million members. News Corporation is an international media conglomerate and consisting of Fox, Sky, DirectTV, New York Post, and Harper Collins. Intermix Media recently settled a spyware suit with the State of New York for $7.5 million dollars. The transaction is expected to close in the fourth quarter pending shareholder approval. is attracting 2 million new registered users every month according to chief executive Chris DeWolfe. MySpace had revenues of $6.25 million in the second quarter according to an statement from investors obtained by MarketWatch.

A pretty huge payout for a company with a $140 market valuation just 10 months ago. Fox just put together an entire Internet division in a weekend.

Tags: , ,