A battle is brewing over last year’s sale of MySpace, a deal that is widely seen as the marquee transaction of the Web’s second wave. The contenders may seem comically mismatched — MySpace’s founder is squaring off with media titan News Corporation — but the dispute has begun to attract a lot of attention.
It was already known that Brad Greenspan is suing the site’s former parent company, Intermix, and others over last year’s deal to sell itself for $580 million. Mr. Greenspan, who was at one time Intermix’s C.E.O., contends the sale negotiations were rigged to produce a low-ball price for MySpace, a popular Web site that allows users to create personal pages and link to others’ pages.
On Thursday, however, Mr. Greenspan stunned the Web community by releasing exceprts from internal e-mails and legal depositions that he says support his claim that the transaction was “one of the largest M&A scandals in history.”
Mr. Greenspan also calls for a federal investigation and an unwinding of the sale, alleging that Intermix hid key revenue data from shareholders in order to facilitate a deal with News Corporation.
Friday, October 06, 2006
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