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Intermix Media Announces Closing of Focalex Acquisition and
Provides Update on Stockholder Litigation
LOS ANGELES, Nov. 8 /PRNewswire-FirstCall/ -- Intermix Media, Inc. (AMEX: MIX)
announced today that it has consummated its acquisition of Massachusetts- based
Focalex, Inc., an Internet advertising and affiliate marketing company. Under
the terms of the acquisition agreement previously announced by Intermix on
October 12, 2004, the Company will pay Focalex stockholders aggregate
acquisition consideration of $4.3 million consisting of approximately $2.6
million in cash and 548,000 shares of Intermix Media common stock.
Intermix Media also provided an update today on its pending stockholder
litigations matters. On October 1, 2004, the Company's motion to dismiss the
consolidated derivative action pending against the Company and various of its
current and former officers and directors in Los Angeles Superior Court was
granted and the lawsuit was dismissed. Plaintiffs may appeal the decision of
the Court, but to date, have not filed notice of their intent to do so.
In addition, the Company announced today that an agreement in principle has
been reached to settle a consolidated securities class action case pending in
U.S. District Court in Los Angeles. The lead plaintiff and the Company have
agreed to settle the lawsuit for $5.5 million in cash. The Company's insurance
carriers have conditionally agreed to fund the entire settlement. Consummation
of the settlement is conditioned on agreement by the parties to the additional
terms and conditions of a stipulation of settlement and upon the Court's
acceptance and approval of the settlement.
"The anticipated resolution of the class action lawsuit is another important
milestone in the turn-around of Intermix Media," said Richard Rosenblatt, Chief
Executive Officer. "This settlement is an important step toward removing
obstacles that could hinder the growth of the business and the enhancement of
stockholder value, and is not an admission of guilt or wrongdoing in any
respect."
ABOUT INTERMIX
Intermix Media is a leading online media and entertainment company that
leverages proprietary technologies, analytical marketing tools, and unique
viral and user generated content across its vast online network and develops
ecommerce brands. Intermix Media operates through two business units -- the
Intermix Network and Alena.
The Intermix Network reaches over 15 million consumers each month through more
than 50 websites grouped into three main categories: social networking, casual
gaming and viral entertainment. MySpace.com is the Internet's leading social
networking site with over 4.7 million members. Grab.com, Intermix's premier
gaming site, is the first and most comprehensive self-governing casual gaming
site. In addition, Intermix Network users share over 500,000 pieces of content
per day making it one of the most shared content destinations on the Web.
Beginning with the Intermix Network, Alena utilizes the Internet to provide a
complete start-to-finish solution for bringing new products to market through a
unique integration of proprietary technologies and analytical marketing.
SAFE HARBOR STATEMENT
This press release contains forward-looking statements that involve risks,
uncertainties and assumptions about the matters discussed. No assurances can
be given that the future results or events covered by such forward-looking
statements will be achieved or that the settlement described herein will be
consummated, and we assume no obligation to update any such forward-looking
statements. The factors which could cause actual results or events to differ
materially from those suggested by any such statements include, among others,
those discussed in the Company's Quarterly Report on Form 10-Q for the quarter
ended June 30, 2004, as well as the following additional factors: the risk that
the Company, lead plaintiff in the class action lawsuit and/or any of the other
defendants in the lawsuit cannot agree on the additional terms and conditions
of the settlement to be negotiated and documented in connection with presenting
such settlement to the Court for approval; the risk that the Court declines to
approve the settlement as a full and final compromise of the claims of the
stipulated class of plaintiffs; the risk that a number of members of the class
covered by the settlement choose to opt out of the settlement thereby
triggering a right of the Company to terminate the settlement; the risk that
the Company's insurance carriers fail or refuse for any reason to fund the
settlement; and the risk that the Company's excess D&O carrier elects to
challenge its obligation to provide coverage for settlement of the class action
lawsuit and seeks reimbursement for such amounts from the Company. The
preceding matters constitute cautionary statements identifying important
factors with respect to such forward-looking statements, including certain
risks and uncertainties that could cause actual results to vary materially from
the future results covered in such forward-looking statements. Other factors
could also cause actual results to vary materially from the future results
covered in such forward-looking statements.
Contact:
Bennet Ratcliff, Westhill Partners
(310) 806-6200
DATASOURCE: Intermix Media, Inc.
CONTACT: Bennet Ratcliff, Westhill Partners, +1-310-806-6200,
, for Intermix Media, Inc.