lrom uamages LxperL 8eporL-

uefendanLs breached Lhelr duclary duLy by noL closlng a Search arLnershlp prlor Lo close of news Corp acqulsluon.
lL appears managemenL lnLenuonally delayed closlng a maLerlal conLracL LhaL would have beneued
Shareholders and llkely been dlsclosable evenL. Speclcally, an onllne web Search arLnershlp Lo replace
WhaL had been an explred or defuncL Search arLner (a key way Lhe defendanLs knew lL would dramaucally
8oosL revenue for beneL of defendanLs, posL-Shareholder voLe.)
-ln addluon, defendanL's appear Lo Lurn over aucuon or buslness parLner selecuon process Lo Acqulror before shareholder voLe, elongaung closlng process.
-ln addluon defendanLs lmpeded ablllLy Lo geL lndependenL Search arLner 'bld' by re-packlng Lhe Search resenLauons for Search arLners (such as ?ahoo (referred
Pereln as CverLure( Search dlvlslon ) or ?ahoo buL one ln same). (see !uly 23 emall
lnsLrucuons from CLC 8osenblau)
lnsLead, managemenL appeas Lo have begun worklng on a 'comblned' search deal wlLh lox lnLeracuve web properues, whlch llkely delayed closlng on Coogle or Mlcroso
arLnershlps whlch cpuld have been avall Lo close prlor Lo SepLember 30, 2003.
Closlng on Search arLnershlp would llkely have resulLed ln lmmedlaLe maLerlal [ump ln Myspace 8evenue and L8l1uA proLs and creaLed addluonal dlsclosure
requlremenLs by lnLermlx Lo shareholders prlor Lo SepLember 30 shareholder voLe. (Creaung lnformed shareholder voLe).
-uld 8osenblau as CLC, acL ln dlsloyal fashlon by manlpulaung Search process Lo merge wlLh lox's before Shareholder voLe?
Could such acuons also have deLerred or manlpulaLed oLher poLenual 8ldders for lnLermlx (l.e. ?ahoo lLself. Mlcroso learnlng of Lhe value of Search revenue LhaL could
have been generaLed o Myspace could surely wlLh such lnLernal value undersLandlng, be a poLenual hosule bldder ln a pesslmlsuc ouLlook by uefendanLs. 1herefore, by
salllng lnLo Lhe Search sulLors key meeungs wlLh eecuvely a showlng of CompleLed deal vs. sub[ecL Lo shareholder's voLe. lnsLead of proLecung company's lndependence,
8osenblau ew lox llags (presenLauon Comblnlng new 'laL' lox
Pow was Lhls feaL accompllshed?
SepLember 13,
2003-Coogle
Search
arLnershlp
osslble
1PL 8CSLn8LA11 SClLn1L8 LLvLL knCWLLuCL Cl 1PL vALuA1lCn Cl ACL APLAu
Cl uLCLM8L8 AnnCunCLu ACL/CCCCLL $1 8lLLlCn lnvLS1MLn1 MAuL A1 $20 8lLLlCn vALuA1lCn
!uly 13, 2003-
Angwln (pg.
139)
dld a llule
dance"
!uly 17, 2003-
Angwln
comp/vlacom
bld #2
MlC8CSCl1
ueuLche 8ank's engagemenL was LermlnaLed 8y lnLermlx and only bank LhaL provlded
A valuauon of lnLermlx's asseLs. ueuLche was 1old Lhey dld such a good [ob Lhey would be
Plred for falrness oplnlon (pre-declslon Lo hlre 1homas Welsel). 1hls loss of economlc value
and refusal 1o glve any credlL, upseL ueuLche 8ankers as Lhey Send emalls aer Lhe !uly 18,
2003 announcemenL ls made 1haL news Corp has slgned merger agreemenL Lo buy
lnLermlx aL $12.00 per shareuays before selllng Lo news Corp
ln1L8LS1Lu
ln ACCul8lnC
!uL? 18, 2003.
8u1 nLvL8 SPCWn
CC81unl1?
!uly 18, 2003- osL-deal And on
lrlday l Lalked Lo Mlcroso who
would have loved a shoL aL lL."
uld 8osenblau
And Sheehan
8reach Lhelr duclary
duLy
1o show Search
CpporLunlLy
1o Mlcroso and
1ry Lo consumaLe a
parLnershlp
before Sep 30, 2003?
!uly 19, 2003- PS81
vlCLA1lCn-
Shareholders of lnLermlx
never even know Lhere
Was a muslc buslness lnslde
Myspace, lnc
8y laLe !uly 2003,
lnLermlx managemenL ls
locused on meeung
WlLh Search arLners
8uL delays closlng a deal
Whlch ls agalnsL besL
lnLeresLs of shareholders
CLC 8osenblau a appears Lo have
mlsled ?ahoo LhaL lox already
owns lnLermlx for Lhe sake of any
proposals or oers, as now ?ahoo
would see LhaL Lhey were blddlng
on lox + lnLermlx. Llkely
conLrlbuung Lo whaL was a
successful pushlng, delaylng, or
deferrlng closlng a Search
arLnershlp or runnlng Search
Aucuon llke ACL ls dolng durlng
Lhls same perlod.
!uly 23, 2003
!uly 23, 2003- llkely
vlolauon of PS81
8LvLnuL SClLnCL
LM8LZZLLu 18AlllC
LvluLnCL
AugusL 2, 2003
?ahoo Search
arLnershlp
Meeung
AugusL 2, 2003- ?ahoo
Search Meeung, 8eporL
up Lo news Corp
AugusL 2, 2003- PS1 relaLed emall-
shows Lhey undersLand Lhere ls
lssue so Lhey [ump on phone Lo
dlscuss vs. emall.
AugusL 4, 2003
Peckerman [olns lox lnLeracuve
Subsldlary acuvely - Lmployee as of 8/4/2003.
-locuses on Search
-Pad already been sLudylng Myspace cerLalnly
8y Lhls polnL and llaslng wlLh Levlnsohn.
!Angwln, from her lnLervlews of news corp employees
And lnLermlx employees from book abouL her employer's
Acqulsluon of Myspace, enuLled SLeallng Myspace" 2009, 8andom Pouse
AugusL 4, 2003-
new Corp
Acqulres head of
Search. locus
becomes Search
Aucuon
AugusL 8, 2003
8LSluLn1 88LWL8 A1 SLA8CP
CCnvLn1lCn
Anu ?L1 CAnnC1 CCnSuMA1L nLW
SLA8CP A81nL8SPl Wl1P CCCCLL
C8 ?APCC C8 MlC8CSCl1.
8oLh CLC and
resldenL Lhen go on
vacauon lnsLead
Cf nlshlng/closlng
Search deal for
Myspace prlor Lo shareholder
voLe.
AuCuS1 10, 2003
nLWS CC8 CLC
Al1L8 8CA8u MLL1lnC
1PA1 8CSLn8LA11 Anu uLWCLlL
A11Lnu, S1A81S u8LlCL?
lCCuSlnC Cn 'SLA8CP' CC81unl1?
Sep 19, 2003
! MC8CAn lS LnCACLu 8? Anu
8L8LSLn1S nLWS CC8
8u?L8
Anu vALuLS ln1L8Mlx A1 u 1C $1.4
8lLLlCn ln 1PLl8 8LC81 1C nLWS CC8
ln1L8Mlx, lnC.
uavldCarllck, lnLermlx ulrecLor & non-
execuuve
Chalrman, CCn18CL SPA8LPCLuL8 (AL ASk!
he ls mosL senlor lndependenL dlrecLor And
aL ume was on nomlnaung commluee,
compensauon commluee, And audlL
commlLee)
CLCll ?AnC ulrecLor of Ask !eeves
And on nomlnaung Commluee, also Lhru hls 8edolnL LLC
A ulrecLor of 31 lnLermlx owned MySpace, lnc.
(Was acuvely lnvolved ln M&A accordlng Lo SLC llllngs
CLC/ul8LC1C8
8CSLn8LA11 A11LnuS
CCnl.
(1)
S1An SCPuMAn,
MAnAClnC ul8LC1C8
ALLLn & CC & LCnC
1lML 8CA8u MLM8L8
Cl nLWS CC8
AZ - Anwar !"##$%&
MAnAClnC ul8LC1C8 ALLLn & CC
nLWS CC8
M?SACL, lnC (conLrolled by lnLermlx vla:
l) 31 LqulLy Cwnershlp & ll) ConLrol of
8oard & lll) 8eneLs of Shareholder
AgreemenL slgned ln lebruary 2003 when
company formed
Andrew
Sheehan
8lchard
8osenbl
au
Ceo
?ang
Chrls
ueWolfe
'())(*+,
(*-./.*-.*0,1
02
,
-3&456$&,
vanLageolnL's Carllck was lead dlrecLor
Cf Ask!eeves whlle hls parLner Sheehan saL
on Myspace, lnc. 8oard wlLh
Ceo ?ang who was on Lhe board of
Ask!eeves. And boLh Cf Lhese lndlvlduals
were slmulLaneously dlrecLors of Ask!eeves
when Lhelr banker was worklng agalnsL
1he lnLeresLs of lnLermlx aL Lhe slgnlng of
Lhe Merger agreemenL. Zakkour of !
Morgan Was worklng for news Corp and seL
Lhe valuauon 8eporL submlued as evldence
by news Corp
ln Lhe lederal Lrlal.
!uly 13-18 2003
-Why Lhe 3
Lh
ulrecLor SeaL ls
never lled ls because an
lndependenL would have forced
1he 100 Cwnershlp buyouL
Lrlggered from MySpace Cpuon.
Slnce Lhls never occurs,
lnLermlx ls ln breach of Lhe
merger agreemenL AL Lhe ume of
Lhe shareholder voLe, and ln
addluon
lnLermlx never purchases 100 of
MySpace, lnc.
SL1LM8L8 23, requesung lnfo - vlacom bld #2
CcLober 2003 - Search unlque vlslLor CounL
ll ACL llsLs 36.09 mllllon unlque vlslLors, and MySpace Search llsLs 8.08 mllllon unlque vlslLors
1hen an easy value for MySpace's search asseL lf ACL recelved a $20 8llllon valuauon ls approxlmaLely
23 or MySpace based on Search Audlence ls worLh roughly $3 8llllon as of CcLober 2003 audlence
MeLrlcs. AlLhough Lhe growLh raLe of MySpace ls slgnlcanLly greaLer Lhen Lhe aLe/falllng audlence of
ACL.
uec 17, 2003- 1he $20 8llllon
valuauon
lrom 2009 publlshed book by
news Corp employee, !ulle Angwln 'SLeallng
M?Space' (nLW LvluLnCL)
!anuary 2006-
Mlcroso
Cers $800 mllllon
lor Search for Myspace
Peckman Lold Murdoch
And Chernln abouL value of Myspace
Search,, 'MonLhsLarller', l.e. 7$84984,3:,;<<1,
negouaung for 8 monLhs
WlLh Mlcroso
-MSl1 oerlng $266 mllllon
er year ln revenue Lo Myspace
!anuary 2006- Mlcroso oer $800 mllllon over 3 years for Myspace
Search arLnershlp
!une 13, 2006
!une 13, 2006
U"-3"#$%LMMwd%
;'<#080q%
Jr)#8%^_MM%:'(('0-%
R0#%*)"#<5%H0#%;$8I"<)%
U"-3"#$%LMMw%d%
;'<#080qbU"-3"#$%
^_MM%:'(('0-%Q'1%
!une 2006- Search
Lnglne Aucuon
SLC1lCn ll - MC8L uL8unklnC
8y !une 2006,
news Corp
ueclded Lo noL
8ulld lLs own
Search Lechnology
And lnsLead run
Search Aucuon agaln
!uly 2006 (pg.
203)
Search
2006- !uly 2006- Search Aucuon
*6?9>JE%>>%l%;J.6%&6!TE2>EY%
2006- !uly 2006- Search Aucuon
SLC1lCn ll - MC8L uL8unklnC
!uly 2006 - Search Aucuon
Mlcroso
8lds $1.12
8llllon
ln !une or
!uly 2003
?ahoo blds
$730
Mllllon as
Cf !une/!uly 2003
Coogle 8lds
$730 mllllon
Coogle 2003 8oard
Lrlc SchmldL !ohn uoerr !ohn Pennessey
ArLhur Levlnoshn Mlchael MorlLz aul CLelllnl
8am Shlrarm Larry age Sergey 8rln
ClSCC CC8
Apple
Amazon Larly emploee
lormer Ceo novell
ln1LL
klelner
Amazon
urugsLore.com
PomesLore lnLulL
Sun
ALhereos communlcauons
CeneLech
Saba llexLronlc
Allen & Co. was
Coogle's banker Lo ralse $4.48llllon
AugusL 13-SepLember 13, 2003
nancy ereLsman, Allen & Co.
ConlcLed wlLh [uggllng Ask!eeves/lac
ueal wlLh Coogle oerlng?
SLan Schuman Lhru CcLober
2003, ulrecLor news Corp
nLWS CC8 ul8LC1C8S 2003
ln1LL
lSP
March 2004 Allen &
Co. sells lSP Adware
Company Lo
Ask!eeves
lor $300 and recelves
$10mln fee.
AS!kLLvLS
ASk!LLvLS
lAC CC8
March 23 - !uly 19,
2003 (closlng daLe)
Allen & Co. ls 8anker
for Ask!eeves
And recelves $10
mllllon Commlsslon
on sale Lo lAC for
$1.8 8llllon
AugusL 13, 2003
Allen & Co. announces
Coogle secondary.
CCCCLL
Led by nancy
ereLsman
SepLember 13, 2003
Allen & Co. ralses
Coogle $4.4 8llllon
CCCCLL
!uL? 18, 2003 nLWS CC8
ML8CL8 AC8LLMLn1
SlCnLu 1C ACCul8L
ln1L8Mlx/M?SACL lC8
$12.00.
nereLsman
nereLsman
nereLsman
nereLsman
uecember 13, 2003
Coogle pays $1 8llllon
lor 3 of ACL 1lme Warners
and Lo LxLend Search arLnershlp
CCCCLL
1lML
WA8nL8 ACL
$18llllon
AL
$208llllon
valuauon
nLWS CC8
!MC8CAn
!MC8CAn
SepLember
30, 2003
Shareholders
Approve lnLermlx
Lransacuon
ASk !LLvLS
-ulrecLors Carllck & ?ang are
Acuve ln M&A
uavld Carllck, ASk
!LLvLS ul8LC1C8
ln1L8Mlx
CA8LlCk SPLLPAn 8CSLn8LA11 88LWL8
MCSPL8 MC8LAu
WCCuW
A8u
CuAnu1
lnLermlx ulrecLors
nancy ereLsman
1oolbar/Search/Adware/
uownload dlvlslon
ALLLn & CCMAn?
makes addluonal
$10mllllon+ fee for
sale of Ask!eeves
1haL closed on !uly
19, 2003 Lo lAC
1oolbar/Search/Adware/
uownload dlvlslon purc
Carllck & Sheehan have speclc rlghLs ouLllned ln
'managemenL rlghLs' agreemenL vanLageolnL LLC
LxecuLed when lL lnvesLed lLs Serles C whlch forced
ManagemenL Lo lnform vanLage and Crrlck of all
LhreaLened lawsulLs, lawsulLs, and lnvesugauons
lSP
!anuary 2003, lnLermlx/Carllck/8osenblau
Announce launch of 'Looney
1oon Cursor' webslLe
MA8CP 21, 2003 ML8CL8 AC8LLMLn1
SlCnLu lC8 ASk !LLvLS 1C 8L SCLu 1C lAC
uecember 3, 2003,
n?-AC beglns
lnvesugauon
And lnlual conLacL wlLh
lnLerml
ln uLCLM8L8 2004, ASk!LLvLS 8CA8u S1A81S
SALLS 8CCLSS Anu WC8klnC Wl1P ALLLn & CC.
lAC CC8
lL88u8? 11, 2003
?ang purchases
23 MySpace, lnc.
ulrecLor
23 ueWolfe
1hru MSv LLC
32 MySpace, lnc
uLWCLlL, MS
ulrecLor
?
A
n
C
,

M
S

u
l
r
e
c
L
o
r

SPLLPAn,MS ulrecLor
8CSLn8LA11
, MS ulrecLor
Sl1ZL8 CLAlMS, ln1L8Mlx
uLLA?Lu ln MA8CP 2003,
lC8ClnC llLlnC Cl CCMLAln1
ln A8lL 2003
CCCCLL'S L8lC
SCPMlu1
lnLermlx ClC llahle
And Chalrman Ldell
Announce reslgnauons
uecember 7, 2004.
Carllck becomes new
Chalrman lnLermlx
!uly 2006 - Search
Aucuon rocess
conunues - uoerr,
Coogle
!une 2006- Search
Lnglne Aucuon
SLC1lCn ll - MC8L uL8unklnC
8y !une 2006,
news Corp
ueclded Lo noL
8ulld lLs own
Search Lechnology
And lnsLead run
Search Aucuon agaln
!uly 2006 - Search Aucuon
Mlcroso
8lds $1.12
8llllon
ln !une or
!uly 2003
?ahoo blds
$730
Mllllon as
Cf !une/!uly 2003
Coogle 8lds
$730 mllllon
!uly 2006 - Search Aucuon rocess conunues - uoerr, Coogle
AugusL 7, 2006
Coogle $900 mllllon
ueal closed.
Approx 10 monLhs
Aer closlng
Myspace acqulsluon
Myspace's role and performance allowed news Corp
1o [usufy/perform for lLs nanclal waLermarks, earn
8onuses, lncrease lLs sLock value aL deLrlmenL
Cf lnLermlx publlc shareholders Lhru 8ld 8lgglng,
Lvaslon of llduclary uuLy durlng 8evlon erlods, Muluple
MaLerlal acLs of omlsslons for publlc llngs,
AugusL 7, 2006
- Coogle /
Myspace
$900mln deal
lC8ML8 ln1L8Mlx LMLC?LL lnvCLvLu ln SLA8CP
1lvC
-8oard Member
Ceo ?ang
ASk !LLvLS
-8oard Member
Ceo ?ang, Carllck
CCCCLL'S SCPMlu1
& ALLLn & CC's
L8L1SMAn knew
Coogle's presldenL, Lrlc
SchmldL aL rlnceLon
and has pauenLy
worked, as Allen & Co.
hablLually does, Lo
bulld a cllenL
relauonshlp
november 2004-
lC81unL
A81lCLL
Cne of Lhe rm's bankers, nancy ereLsman, knew Coogle presldenL, Lrlc SchmldL aL rlnceLon and has pauenLly worked, as Allen & Co. hablLually does, Lo bulld
a cllenL relauonshlp. 1he payo came when Coogle announced Lhe names of Lhe 31 underwrlLers LhaL would handle lLs lC, Allen ls slaLed Lo be ln a small group
of rms [usL below Lhe Lwo glanLs servlng as managlng underwrlLers, Morgan SLanley and CSl8. And lf Lhe umlng of Coogle's oerlng doesn'L geL ln Lhe way, one
or boLh of Lhe company's young Co-CLCs, Sergey 8rln and Larry age, wlll be aL Sun valley (as wlll SchmldL), [olnlng Lhem wlll be Allen's Lhree marquee cllenLs,
8uperL Murdoch, 8arry ulller, and Lhe newesL Coca-Cola CLC, nevllle lsdell on whose 8oard PerberL slLs someumes knocklng heads."
ASk !LLvLS
-ulrecLors Carllck & ?ang are
Acuve ln M&A
uavld Carllck, ASk
!LLvLS ul8LC1C8
CLCll ?AnC, ASk
!LLvLS ul8LC1C8
ln1L8Mlx
CA8LlCk SPLLPAn 8CSLn8LA11 88LWL8
MCSPL8 MC8LAu
WCCuW
A8u
CuAnu1
lnLermlx ulrecLors
nancy ereLsman
1oolbar/Search/Adware/
uownload dlvlslon
ALLLn & CCMAn?
1oolbar/Search/Adware/
uownload dlvlslon purc
lSP
!uL? 18, 2003
ln1L8Mlx SlCnS
ML8CL8 AC8LLMLn1
Wl1P nLWS CC8
lAC CC8
CA
8LlCk, arLner
vanLageolnL
CCCCLL uLAL??
23 ueWolfe
1hru MSv LLC
32 MySpace, lnc
?AnC, MS ulrecLor
CCCCLL'S L8lC
SCPMlu1, ul8LC1C8 & CLC
30 Cwnershlp
lnLermlx
MonLgomery
Says $630mln
falr
!unL 14. 2003
ln1L8Mlx
SL11LLS Wl1P-n?
AC lC8
$7.3 MlLLlCn
nLWS CC8 nCW
uses ! MC8CAn'S ZAkkCu8 (currenL
banker Who worked for Ask!eeves
aL Clubank a monLh before, Ask!eeves
1ransacuon closed !uly 19, 2003
S1An SCPuMAn,
nLWS CC8
ul8LC1C8
nLWS CC8
kLnCuCP
1CM L8klnS
kLLlnL8 L8kln
& ulrecLor news
CorpS
CCCCLL ul8LC1C8
!CPn uCL88, kLLlnL8
L8klnS
1lvC ulrecLor- 8andy
komlsar, klelner
1lvC ulrecLor- ?ang
!Morgan,
ZAkkCu8
=>?@A3BB3$:,C"B%"9$:,
1WLlSLL
SA?S $630
Mllllon falr
$4.4 8llllon Secondary Coogle AugusL 13, 2003
Led by ereLsman who Pas recenLly admlued also
lnvolved wlLh Coogle on negouaung deal wlLh 1lme
Warner for search uecember 2003
Coogle
1lML WA8nL8/ACL
CAuLllLLu,
kLLlnL8 & ulrecLor
1W/ACL
!AMLS 8A8kSuALL,
kLLlnL8 & ulrecLor
1W/ACL
8arry ulller
SLeven
8auner
uonald
keough
Ldward
8ronsLeln
1homas
Mcuerney
MlCPALL P.
SCPWL8u1M
An
norman
SchwarLzkof
Alan Spoon
Marle kravls
lAC CC8 2003
uanahan
& olarls
venLures
Warner Muslc
Cablevlslon
WashlnLon
osL &
CocaCola
&
lord MoLor vlvlendl
Allen & Co, Coca Cola,
8erkshlre PaLhaway landango
news Corps
1hornLon ls on
8oard lord
klelner
erklns
S1An SCPuMAn,
ALLLn & CC & nLWS
CC8 ul8LC1C8
ASk!LLvLS
8CA8u un1lL
!uL? 19, 2003
Allen & Co & CCCCLL prepplng
lor secondary laLe !uly?
!MC8CAn
CA8LlCk,
ln1L8LCCkLu ul8LC1C8, ASk!LLvLS
?AnC
ln1L8LCCkLu ul8LC1C8, ASk!LLvLS
Cl1l8Ank 1C 8AnkL8 'ZAkkCu8'
8CvluLu $1.8 8lLLlCn
vALuA1lCn Cn C8 A8Cunu
MA8CP 2003. ZAkkCu8
Aprll 2003
Zakkour !olns !
Morgan
As head of Lech
M&A
!uL? 13, nLWS CC8 LnCACLS
!MC8CAn & ZAkkCu8 PLAuS uLAL
lC8 ! MC8CAn WPlCP 8CvluLS $1.4
8lLLlCn vALuA1lCn 8LC81 lC8
M?SACL/ln1L8Mlx
SCPMlu1/CCCCLL
8arry
ulller
SLeven
8auner
uonald
keough
Ldward
8ronsLel
n
1homas
Mcuern
ey
MlCPAL
L P.
SCPWL
8u1MA
n
norman
SchwarL
zkof
Alan
Spoon
Marle
kravls
lAC CC8 2003
uanahan
& olarls
venLures
Warner Muslc
Cablevlslon
WashlnLon
osL &
CocaCola
&
lord MoLor vlvlendl
Allen & Co, Coca Cola,
8erkshlre PaLhaway landango
news Corps
1hornLon ls on
8oard lord
klelner
erklns
S1An SCPuMAn,
ALLLn & CC & nLWS
CC8 ul8LC1C8
ASk!LLvLS
8CA8u un1lL
!uL? 19, 2003
Allen & Co
L8L1SMAn
!MC8CAn
CA8LlCk,
ln1L8LCCkLu ul8LC1C8, ASk!LLvLS
?AnC
ln1L8LCCkLu ul8LC1C8, ASk!LLvLS
Aprll 2003
Zakkour !olns !
Morgan
As head of Lech
M&A
SCPMlu1/CCCCLL
uCL88,
CCCCLL,
kLLlnL8
AuCuS1 2, 2003 8osenblau emalls
news Corp Lo Lell 1hem he wlll
updaLe Lhem AbouL ?ahoo meeung
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