Blog Post

Class-Action Suit Challenges Intermix Sale To News Corp.

The inevitable class action suit has been filed protesting the sale of Intermix — and with it — to the Fox Interactive unit of News Corp. Kreindler & Kreindler LLP alleges in California Superior Court “that current directors, officers and controlling shareholders of Intermix designed a sale … that benefited themselves at the expense of the Company and its public shareholders.” K & K spokesperson Gretchen Nelson said the firm’s investigation “has revealed that other prominent companies expressed interest in advancing more attractive acquisition proposals, only to be given the cold shoulder by the self-interested defendants.” In the company’s proxy filed with the Securities and Exchange Commission last week, it says it talked to at least three other buyers, and was in preliminary negotiations with one of them while simultaneously negotiating with News Corp.

Meanwhile, Fox Interactive is getting ready for the deal to close. The News Corp. unit announced a deal in July to acquire Intermix for $580 million. (via
Press release.

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