US: Ex-MySpace owner sues Google, Ask.com

The former owner of onetime top social networking site MySpace is reportedly suing Google and Ask.com for anticompetitive conducts.

The former CEO of Intermix Media filed an antitrust lawsuit against Google and Ask.com accusing the companies of rigging bids to lower the cost of a MySpace takeover. Brad Greenspan claims in the suit that the companies colluded to cause MySpace to sell for $580 million, when it could have been worth $132 billion.

Defendants named in the suit include two former MySpace board members, Geoff Yang and David Carlick, as well as IAC/InterActiveCorp, which now owns Ask.com. News Corp was also named as a defendant.

News Corp ultimately acquired MySpace in 2005.

The lawsuit is filed as a class action, reports say, and Greenspan is now seeking damages for what he believes are millions lost through the sale of the company thanks to a complex series of agreements between the companies that surround the search engine contract for MySpace.

The suit is also seeking financial restitution for MySpace stockholders, reports say.

Full content: Courthouse News Service

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.