Intermix On the Radar

"Our users are creating content that we are advertising against," says Rosenblatt. "You know, at one point people nearly wrote us off for dead. To go from that to a fast-growing company is pretty exciting."

Intermix still faces a lot of vulnerabilities: The technology behind social networking is very easy to replicate, although what sets MySpace apart right now is that it has managed to turn the technology into a growing revenue stream. Even riskier is the notoriously fickle online audience that has for now flocked to MySpace and Grab.

But if the company proves to be more than a flash in the pan, it may be that Nasdaq will regret passing up relisting Intermix. Or perhaps it will be snapped up: Companies like InterActiveCorp (IACI Quote) have shown an interest in buying social-networking startups.

"I think the most obvious buyers are large media companies," says Lewis, who stresses that he's trusting the management to decide whether or when to sell. "The media giants need a way to play in this business. Can you imagine buying a profitable company at this valuation that's drawing eyeballs and that you can put your content in to add to the value of?"