News Corp. has signed an agreement to purchase Intermix Media Inc., a network of Web sites, for $580 million in cash. In a separate transaction Intermix exercised an option to purchase the 47 percent of the MySpace.com Web site that it did not already own.
Intermix operates a direct marketing division, Alena, that sells cosmetics and dietary supplements via company- and third-party Web sites, and to a lesser extent space advertising, direct response TV and radio.
Altogether Intermix maintains more than 30 Web sites that will become part of New Corp.’s newly formed Fox Interactive Media unit. These Web sites including MySpace.com generate 45 million unique visitors monthly.
Intermix reported overall revenues increased 49% to $79 million in the most recent fiscal year that ended March 31, up from $52.9 million in 2004. The company reported its Alena division produced $20 million in increased revenues, compared to the previous year, due to higher continuity program sales.
Ninety percent of Intermix’s audience reportedly shopped online within the last six months, mostly in the travel, clothing and book categories. Some 77% of Intermix Web site users have made online purchases in the last six months. Roughly 68% of Intermix network users have made purchases by telephone or catalog.
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