News Corporation has signed an agreement to acquire Intermix Media, Inc. for approximately US$580 million in cash, hence setting a foot in the field of internet news blog and social networking.

Influenced by the news the stock price of Intermix Media climbed 9.3 percent to US$ 11.72.

The acquisition makes Murdoch's News Corporation the owner of MySpace.com, known as a "leading lifestyle portal".

As part of the deal, Intermix, the principal share holder of MySpace.com has exercised its option to acquire 47 percent of MySpace.com's shares.

Both MySpace.com and Intermix's more than 30 sites will become part of News Corporation's newly formed Fox Interactive Media unit.

The News Corporation, which just moved its head office from Australia to the US, said it is committed to expand its internet presence by offering a deeper, richer online experience for its millions of users.

Once the acquisition is completed, News Corporation's web traffic will double to 46 mln unique monthly users in the US.

Intermix's websites specialize in entertainment, humor, games and social networking as well as visual entertainments.

By Peopel's Daily Online