blinkx Archive

Last month online video search provider Blinkx announced the launch of the "unroll" video ad. Today Blinkx has announced a number of new partnerships, all in the fitness category. The partnerships include: Studio 4 Fitness, Diet.com, BodyArchitect.tv, and Everyday Dish TV. The videos inside the Blinkx platform will be monetized and the source and Blinkx will share in the generated revenue.

The new video content includes fitness videos and educational food videos. Blinkx CEO Suranga Chandratillake notes that using these new videos is a great way to avoid paying an "expensive personal trainer". That argument is similar to the one made by tv hosts selling fancy televisions saying you can avoid going to the movies. 

In other video search news, yesterday Nexidia announced they are powering the search for MSNBC.

Video search provider blinkx has announced the launch of a new online video ad unit today named "Un-roll". Blinkx explains how the Un-roll unit works: a "branded curtain" loads first while the video buffers. After the curtain opens, an overlay launches while the video plays. All typical video advertising options are available inside the video window and the video ends with the curtain again. The video window also includes a full area for advertising text. I’ve embedded two screenshots below that display what the ad unit looks like.

Shell Oil is the first brand to work with Blinkx on the Un-roll format. The company says this new online video advertising format will be more popular with consumers because there’s no long pre-roll ad. When the curtain opens, a few pixels remain on the top of the video window. This seems a bit odd – you can click on the area and go to the advertiser but I think a better interaction would be for the video to stop and the curtain ad to fully return first.

I think it’s great to see online video companies trying different options for video advertising. In other Blinkx news, they recently put in an offer to acquire MIVA.

Video search provider blinkx has publicly announced its proposal to (once again) acquire online advertising company Miva today. Back in August, blinkx offered $1.20 for each Miva share for the company but the deal never went through. Today’s proposed acquisition comes in at $0.55 per share, less than half of the August offer.

blinkx noted this morning, "blinkx believes the proposal is highly attractive for MIVA shareholders, particularly in light of issues in the MIVA business and current market conditions. blinkx’s proposal represents a 108% premium above the closing price of MIVA common stock of $0.2643 on November 18, 2008, and a 39% premium over the average closing price for the thirty days prior to November 18, 2008."

blinkx hits Miva hard with statements like, "MIVA has reported reduced revenues for the last eight consecutive quarters" but they believe that, "blinkx continues to believe that a combination of the two companies – fusing blinkx’s technology with MIVA’s distribution network – presents an exciting and compelling opportunity, and one that would prove mutually beneficial to both companies’ shareholders, employees, and customers."

Miva is located in Florida while blinkx has offices in London and in San Francisco.

Multimedia search provider blinkx has announced a distribution partnership with Getty Images today. The partnership brings blinkx search technology to the Getty Images database. Apparently it’s easier to search for images on Getty using the blinkx search rather than the search on the Getty Images site.

blinkx will use their ad platform, AdHoc, to serve ads next to the images from the Getty Images library. Revenue will be shared between both companies.

Last month blinkx made an offer to acquire Miva and this year they have formed a variety of partnerships with Revision3 and the BBC.

Video search provider blinkx has publicly announced its proposal to acquire online advertising company Miva today. Miva closed yesterday on the Nasdaq at $0.78/share, down from it’s 52-week high of $5.76. blinkx is offering $1.20/share in cash.

blinkx has worked a variety of distribution deals this year — all to help increase the market share for their video search. Miva is best known for their in-content ads. These are the ads that usually have double-underlines and when you mouse over them a small ad pops up over the word(s).  PaidContent has more financial analysis on the potential acquisition.

Here’s the full text of the letter from blinkx to Miva’s management team:

Dear Ladies and Gentlemen,

Re: blinkx and MIVA Combination

I am writing on behalf of the board of directors of blinkx Plc to make a proposal for the business combination of blinkx and MIVA. Under our proposal, blinkx would acquire all of the outstanding shares of MIVA common stock for $1.20 in cash per share. Our proposal is not subject to any financing condition. The transaction would be funded from existing cash resources of the two companies.

Proposal. Our proposal represents a 54.0% premium above the closing price of MIVA common stock of $0.78 on August 7, 2008, and a 36% premium over the average closing price for the one month prior to August 7, 2008.

By whatever financial measure one might use, we believe this proposal represents a compelling value realization opportunity for your shareholders and the quickest and most secure way to see such value, particularly given the several challenges MIVA faces in the near term, including: risk and cost associated with the new technology platform, a deteriorating cash position, continued deterioration of the Media EU business and continued decline in revenue and profitability.

We believe that MIVA’s shareholders would not be well-served by any delay in negotiating or completing the merger process, and that time and/or another round of restructuring plans will not significantly increase MIVA’s valuation.

Background. Having worked together for a number of years you will be aware that blinkx is the world’s largest and most advanced video search engine. Founded in 2004 by Suranga Chandratillake, the company completed a successful IPO on the London Stock Exchange (AIM) in May 2007 and currently has a market capitalization of approximately $160 million, with headquarters in San Francisco, CA and the UK. With an index of over 26 million hours of searchable video and more than 350 media partnerships, including national broadcasters, commercial media giants, and private video libraries, blinkx has cemented its position as the premier destination for online TV. blinkx pioneered video search on the Internet, enhanced by $150 million in R&D over 12 years, and is now protected by 111 patents.

Rationale. blinkx believes that a combination of the two companies would be mutually beneficial to both companies’ shareholders, employees, and customers. blinkx and MIVA have complementary businesses that could benefit greatly from blinkx’s technology and MIVA’s distribution network.

blinkx has worked with MIVA as a customer and partner for a number of years and has a great deal of respect for MIVA’s success in building a global keyword advertising network and growing the MIVA Direct consumer offering. We believe, however, that with the Internet’s continued progression towards rich media and newer forms of advertising, more advanced technology will play a fundamental role in achieving success.

blinkx already has in place a proven and growing video-driven revenue engine, and enjoys an unrivalled technology portfolio which is applicable across many aspects of the online market. A combination of the two companies – fusing MIVA’s advertising network with blinkx’s ability to leverage its technology portfolio into the online market – presents an exciting and compelling opportunity.

Specifically, blinkx’s advanced and scalable matching technology will enable immediate platform improvements for MIVA. As a result large portions of relevant search traffic from MIVA’s search ad network will be monetizeable at higher rates through blinkx’s technology. Furthermore blinkx’s technology holds the potential to build on MIVA’s existing toolbar network, adding the latest functionality and an entirely new revenue stream. Finally, MIVA’s consumer sites and portals, that already attract large audiences, will immediately benefit from blinkx’s advanced video technology and AdHoc advertising platform.

Process and Employees. We would value the opportunity to further discuss with you how to optimize the integration of our respective businesses to create a leading global technology company. We believe that the management and employees of MIVA are critical to realizing a successful transition and foresee an important and central role for MIVA employees in the combined company.

Any acquisition of MIVA would be subject to the opportunity to conduct a limited confirmatory due diligence investigation, the negotiation of a definitive merger agreement containing customary terms and conditions, including customary conditions to closing; no material adverse change to MIVA’s business; appropriate shareholder approvals; and any regulatory requirements. Given our participation in the industry and MIVA’s public status, we envisage an efficient due diligence process appropriate to a public company. We are prepared to deliver a draft merger agreement to you and begin discussions immediately.

Due to the importance of these discussions and the value represented by our proposal, we expect the MIVA Board to engage in a full review of our proposal and discussion of its contents with MIVA’s shareholders. We are prepared to meet at a time and location of your convenience to complete due diligence and commence definite agreement negotiations.

We believe this proposal represents a unique opportunity for MIVA’s shareholders to realize value, and the combined company will be well positioned for future growth. We hope that you and your Board share our enthusiasm, and we look forward to a prompt and favourable reply.

Yours sincerely,

Suranga Chandratillake

CEO and Founder

This communication does not constitute, or form any part of, any offer for, or any solicitation of any offer for, securities or the solicitation of any vote for approval in any jurisdiction.

It’s been a few weeks since the last blinkx release and I was getting a bit worried about the company. But today they are out with a new partnership, this time with MEN7. MEN7 describes themselves as delivering on-demand, high definition, dynamic television programming to men ages 25 to 54.

blinkx will use their video search technology to place relevant advertising next to the videos served on the MEN7 network and will share revenue with MEN7. Other financial terms of the deal were not released.

blinkx now reports 350 partners and 26 million hours of indexed video and audio content. Their latest partnerships include Revision3 and Kiplinger.

Multimedia search provider Pixsy will announce tomorrow a new distribution partnership with National Lampoon. Under the terms of the partnership, Pixsy will power a custom branded search within the National Lampoon network of entertainment sites which they self-report at over five million unique users per month. Financial terms of the deal were not disclosed.

Pixsy and Blinkx (our coverage) seem to be on a crash course for each other in the video search space. Not a week goes by without a Blinkx press release about some new distribution partner while Pixsy seems to have lovin’ from the Valley crowd. Until either one can reach the mainstream audience, distribution deals are key.

Check out our interview with Pixsy CEO Chase Norlin.