WebProNews

Yesterday, News Corp. announced that it will be purchasing Intermix Media for $580 million in cash. News Corp. will also be getting MySpace.com, because Intermix is buying the portion of it that it doesn't already possess.

"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.

News Corp.'s new Fox Interactive Media unit will be getting over 30 new sites from both MySpace.com and Intermix Media, which will help the doubling of News Corp.'s web traffic.

"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.