The founder of MySpace has called for an enquiry into the social networking site’s sale to News Corp., labelling it ‘one of the largest mergers and acquisitions scandals in US history’.
Brad Greenspan, who made $47 million from the 2005 deal, claims on his Free MySpace website that Rupert Murdoch’s media company paid much less then they knew MySpace was worth. News Corp. coughed up $580 million; Greenspan believes it could be valued at $20 billion within a few years.
‘Deliberate steps were taken to withhold and manipulate information; money was improperly gained and laws were broken,’ he wrote. ‘I expect as the authorities get their arms around what happened that this transaction will be unwound and MySpace will be independent.’
Greenspan has filed a lawsuit against Intermix, MySpace’s former owner, and venturer capitalist firm VantagePoint Venture Partners, alleging that News Corp acquired Intermix at an unfair price.
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I agree here. they got a hell of a deal and undervalued the company. worth way more then 500 mil.
Especially if YouTube’s going to be bought for 1.65 billion it looks like…….man they F’d up…….could’ve got at least that if not more.