Brad Greenspan

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Brad Greenspan is an internet entrepreneur who has been involved in the founding and proliferation of various web properties including MySpace. Greenspan founded eUniverse Inc. in 1998, which went public in 1999. The company survived the .com-bust of 2001 and was the incubator that launched MySpace.com in 2003. Greenspan left his position as CEO at eUniverse towards the end of 2003, after accounting problems which led to three quarters of financial results having to be revised forced a four-month halt in trading of eUniverse stock.[1] Greenspan retained a significant percentage of shares in the company and owned 10% of the company when it sold to News Corp in 2005.[2] Greenspan opposed the acquisition, and has been fighting News Corp both legally and publicly ever since. He increased the market capital of Euniverse from $70m to $650m when the company was sold to News Corp.

Greenspan's BroadwebAsia partnered with Major League Baseball Advanced Media (MLBAM) in 2008 to launch MLB.com's first Chinese website MLB.cn.[3] Greenspan has established several other businesses, e.g. Broadwebasia (an Asian internet company, out of business), Borba (a health product-line, not available any more), and LiveUniverse (a social network focused internet company, out of business). LiveVideo, Inc. and its livevideo.com (now defunct) social network launched in 2008 was one of the first live streaming platforms.

Dow Jones[edit]

In mid-2007, Brad Greenspan presented a takeover bid for Dow Jones' Wall Street Journal (WSJ) against News Corp.[4] Greenspan was unsuccessful in his bid against News Corp.[5]

History[edit]

Brad Greenspan attended UCLA, where he launched his first company Palisades Capital from his dormitory room.[citation needed]

MySpace[edit]

The MySpace service was founded in August 2003 as a new initiative and 100% owned division of publicly traded internet company eUniverse (which later in mid-2004 changed its name to Intermix).[citation needed] eUniverse created and marketed the Myspace website, providing the division with a complete infrastructure of finance, human resources, technical expertise, bandwidth, and server capacity right out of the gate so the MySpace team wasn’t distracted with typical start-up issues.[citation needed] The project was overseen by Brad Greenspan (eUniverse's Founder, Chairman, CEO), with Chris DeWolfe (MySpace's former CEO), Josh Berman, Tom Anderson (MySpace's former president), and a team of programmers and resources provided by eUniverse.[citation needed]

Greenspan resigned in late October 2003 as CEO and as a Director in December 2003 stating in an SEC 8k that he felt the other "directors have breached their fiduciary duties to the Company and its stockholders"[6]

Brad Greenspan / The MySpace Report[edit]

In October 2006, Brad Greenspan launched a website, called freemyspace.com, and published reports that called for the Securities and Exchange Commission, the United States Department of Justice and the U.S. Senate Committee on Finance to investigate News Corp's acquisition of MySpace as "one of the largest merger and acquisition scandals in U.S. history."[7] The report's main allegation is that News Corp. should have valued MySpace at US$20 billion rather than US$327 million, and had, in effect, defrauded Intermix shareholders through an unfair deal process.[8] The report received a mixed response from financial commentators in the press.[9] A lawsuit led by Greenspan challenging the acquisition was dismissed by a judge.[10] Greenspan's claims were validated when in June 2010 Judge George H. King ruled ruled in favor of shareholders in a summary judgement decision. According to Gretchen Morgenson of the New York Times, "Viewed as a whole, Judge King wrote, the evidence indicates that “there are at least triable issues of fact” about whether Mr. Rosenblatt acted in good faith or tilted the auction in favor of the News Corporation “for a purpose other than maximizing shareholder value.”

A trial might also determine if the rest of the Intermix board improperly put Mr. Rosenblatt in charge of the auction process and then turned a blind eye to his actions, the judge concluded." Further, the Judge refused to dismiss the damage report finding "shareholders suffered economic damages in the News Corporation bid of $506 million to $667 million" [11]

References[edit]