News Corp. Buying Intermix

The deal represents a big win for Intermix backer VantagePoint.
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News Corp.

(NWS) - Get Report

agreed to buy

Intermix

(MIX)

for $580 million in cash, expanding its online presence.

The $12-a-share deal offers a 12% premium to Intermix's Friday closing price. The agreement comes just a month after Intermix

settled with the New York attorney general over claims the company was bundling spyware into its so-called social networking offerings.

(

TheStreet.com

profiled Intermix in February as investors were starting to take a second look at the company.)

The pact also represents a big win for the venture firm Vantage Point, which took Intermix under its wing in late 2003 with the stock trading at around $2.25. VantagePoint will vote its 22.4% stake in favor of the transaction, News Corp. said.

News Corp. recently created a Web unit called Fox Interactive Media that aims to coordinate the online activities of the company's TV operations.

Early Monday, Intermix surged $1.07 to $11.79, and News Corp. dropped 11 cents to $17.36.