Brad Greenspan wants investigation for MySpace purhcase by News Corp

By Vivek Puri | October 5th, 2006 at 01:48 pm ET         

Brad Greenspan, founder of Intermix Media which created Myspace.com wants investigation into the purchase of Myspace.com by News Corp. Brad is looking at SEC, DOJ and the United States Senate Committee on Finance to investigate how News Corp got its hand on the “most valuable Internet companies for pennies on the dollar”.

“For the first time the public can read what took place behind the scenes and how shareholders were blatantly misled into voting for a quick and unfair sale to News Corp.,” continued Greenspan. “Deliberate steps were taken to withhold and manipulate information; money was improperly gained and laws were broken. It is my hope that regulatory bodies will begin their investigations quickly before evidence is destroyed.”

According to FreeMySpace.com, a site put up Brad Greenspan, he has access to incriminating documents which show that Intermix chief executive officer Richard Rosenblatt knew that the real worth of MySpace was around $20 billion. According to him, Richard rushed through the deal with News Corp “in exchange for broad protection from a string of prior corporate misdeeds” and “share in $20 billion in value post-transaction via his new role at News Corp”.

This was bound to happen especially after the Google+MySpace deal where Google will payout $900 million dollars to News Corp over the span of next 3 years and 9 months in return to exclusive rights to provide web search results and sponsored links across MySpace. Also the recent report that MySpace worth will be $15 billion within next 3 year doesn’t help the matter. Let see what News Corp has to say about this episode.

Links:
FreeMySpace.com

Tags: StartupSquad, SocialNetworking, Myspace, Intermix