Intermix Nixes Greenspan Effort ; Postpones News Corp. Deal Slightly

In a detailed SEC filing, Intermix Media lays out its reasons for turning down a last-minute proposal from Brad Greenspan, founder of Intermix precursor eUniverse. Greespan made what looks awfully like a grandstand play Friday to stop the completetion of the sale to News Corp. slated for Sept. 28. Instead, he proposed a complicated shareholder equity deal and a course of action that would result in a company consisting solely of with a Greenspan group as the lead shareholder.
Intermix will open the special meeting Wednesday as planned , then adjourn until Sept. 30 in order to give shareholders more time. Intermix held a board meeting by phone to discuss the proposal.
Intermix CEO Richard Rosenblatt, among those singled out for criticism by Greenspan, said in a statement: “The board concluded that the proposed offer from Mr. Greenspan lacked credibility and did not constitute a proposal that was superior for our stockholders in comparison to the pending transaction with News Corporation. We found the proposal to be speculative and incomplete, creating obvious risks to our stockholders.” One reason given by the board: the nebulous nature of what it terms the “Greenspan Proposal.” The claim: that Greenspan said the unidentified private equity firms he had lined up for the $300 million minimum it would take to buy up to 50 percent of outstanding equity would be provided that these funds “may provide commitments to fund the acquisition only after they have been provided with detailed financial data regarding Intermix that is not currently publicly available.”
The board reaffirmed its recommendation to sell to News Corp., where Fox Interactive Media plans to use the wildly popular as a linchpin for its new interactive strategy. SEC filing.
Related: Intermix Founder Counters News Corp. Offer At Last Minute

Intermix’s History With Greenspan