WebProNews

News Corporation announced today that it is buying Intermix Media for $580 million in cash, and along with that will come MySpace.com, as Intermix is purchasing the portion of it that it doesn't already own.

News Corp.'s traffic is expected to double as its new Fox Interactive Media unit gets over 30 sites from both MySpace.com and Intermix Media.

"Intermix is an important acquisition for News Corp., instantly doubling the number of visitors to our sites and providing an ideal foundation on which to meaningfully increase our internet presence," said News Corp. Chairman and CEO, Rupert Murdoch.

"Intermix's brands, such as MySpace.com, are some of the web's hottest properties and resonate with the same audiences that are most attracted to Fox's news, sports and entertainment offerings," said Murdoch. "We see a great opportunity to combine the popularity of Intermix's sites, particularly MySpace, with our existing online assets to provide a richer experience for today's internet users."

The deal is subject to certain customary conditions including approval of the Intermix common and preferred stockholders. It is expected to close in the fourth quarter.

News Corp. has entered into a voting agreement with VantagePoint Venture Partners, the largest stockholder of Intermix, in which VantagePoint will vote in favor of the transaction.

"We are very excited to combine our unique Internet reach and assets with one of the most exciting media companies in the world. We look forward to continuing to lead the market in unique content, social networking, and analytical marketing," said Intermix CEO Richard Rosenblatt. Mr. Rosenblatt and MySpace CEO, Chris DeWolfe will remain in their current positions after the deal is completed.

Chris is a staff writer for WebProNews. Visit WebProNews for the latest ebusiness news.