A Los Angeles judge dismissed a legal challenge last week regarding News Corp.'s purchase of MySpace.com brought by Brad Greenspan, the company's chief investor.
Superior Court Judge Carolyn B. Kuhl said late Friday that the $580 million purchase of Intermix Media Inc., the parent company of the social networking site, last year by News Corp. was lawful and shareholders were fully informed when they voted on the transaction, News Corp. said Monday in a statement.
"We hope this ruling will finally put an end to Mr. Greenspan's repeated and unsubstantiated attacks and look forward to focusing our attention on continuing to strategically grow our business," said Mike Angus, General Counsel of News Corporation's Fox Interactive.
Last week, Greenspan issued a statement along with a lengthy report at FreeMyspace.com claiming he has internal documents and e-mails that indicate Intermix executives agreed to sell MySpace to News Corp. quickly so it could pay off debts, make a profit and secure cushy executive positions at Fox Interactive, the division of News Corp. that would manage the site.
Greenspan, who was the largest individual shareholder of MySpace and made more than $40 million off its sale, said the deal to sell the popular site last year for $550 million intentionally defrauded shareholders and called the deal "one of the largest merger and acquisition scandals in U.S. history."
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