Myspace.com Founder: Sale to News Corp. “Defrauded Shareholders”

LOS ANGELES, October 5: Brad Greenspan, the founder of
Myspace.com, today issued an online report at Freemyspace.com that alleges that
the sale of the popular networking site to News Corporation earlier this year
“intentionally defrauded shareholders out of tens of billions of dollars.”

In the commentary, Greenspan says that the sale of the
company “is one of the largest merger and acquisition scandals in U.S.
history.” He also calls on the Securities and Exchange Commission, the United
States Department of Justice and the United States Senate Committee on Finance
to investigate the deal.

"The answer to how News Corp. was fortunate enough to
buy one of the largest and most valuable Internet companies for pennies on the
dollar is now clear," said Greenspan, the former chairman and CEO of
Intermix, which created Myspace, and Intermix’s largest individual shareholder.
"I expect as the authorities get their arms around what happened, that
this transaction will be unwound and Myspace will be independent. An
independent Myspace is significantly better for its users and
shareholders."

"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."

Greenspan also maintains that Intermix’s CEO, Richard
Rosenblatt, “knew before the transaction that Myspace was well on its way to
becoming worth at least $20 billion."

Greenspan’s report notes, “In addition to Rosenblatt's
stunning and incriminating emails, the two highest non-director senior
executives, chief financial officer Lisa Terrill and chief operating officer
Sherm Atkinson, have come forward through their legal counsel indicating
significant breaches of fiduciary duty by Rosenblatt and the directors as part
of the News Corp. transaction.”

In February, Greenspan filed a complaint against Intermix
and VantagePoint Venture Partners in the Superior Court of California County of
Los Angeles. The complaint stated that News Corp. purchased Intermix (which
owned Myspace), in a “cash-out merger as a result of an unfair process and at
an unfair price that did not reflect the recent growth and future prospects of
Myspace.”