A shareholder of Intermix Media has sued the company, claiming that it agreed to sell itself too cheaply to News Corp.


(The Hollywood Reporter) -- A shareholder of Intermix Media has sued the company, claiming that it agreed to sell itself too cheaply to News Corp.

Intermix, parent of MySpace.com, agreed in July to a price of $580 million, or $12 per share.

The suit filed by Kreindler & Kreindler for John Friedmann, who owns 40,000 shares of Intermix, asserts that Intermix directors should have sought out other buyers but instead hamstrung potential bidders by agreeing to pay News Corp. a $25 million breakup fee if the deal doesn't go through. The suit seeks injunctive relief.

Intermix shareholders are scheduled to vote on the acquisition Sept. 28.