Blinkx PLC is the world’s largest and most advanced video search engine. The company has more than 26 million hours of online content, including audio, video, viral and TV content. The company today announced it has issued a letter to the board of directors and CEO of MIVA Inc. (NASDAQ: MIVA), in which Blinkx proposes to acquire the digital media company for $1.20 per share, a 54% premium above MIVA’s 78-cent common stock closing August 7, 2008 and a 36%-premium over MIVA’s average closing price for July.
MIVA’s divisions make it an appealing acquisition to Blinkx, which, according to the press release, is moving forward in the market through advanced technologies and organic growth.
MIVA focuses on owning and operating a growing portfolio of consumer destination sites, as well as interest-specific toolbars, through its Direct division. The company operates in North America and Europe, running a pay-per-click ad network focused on key vertical sectors through its Media division.
“Our recent strong momentum in the business, and our positioning in the area of performance-based advertising which has shown itself to be robust in the current climate, has encouraged us to consider opportunities to accelerate our growth. We’re excited about the opportunities presented by a combination with MIVA. blinkx has been developing advanced monetization technologies, which we are now ready to introduce aggressively into the market,” Suranga Chandratillake, CEO and founder of Blinkx stated in the release.
Blinkx is confident a merger with MIVA would benefit shareholders, employees and customers of both companies. The fusion of both companies would use MIVA’s advertising network, and Blinkx’s technology to evolve with changing Internet features and consumer demands.
“This transaction would enable us to accelerate the penetration of these more advanced technologies into the marketplace over the current planned organic approach. We hope that the board of MIVA will appreciate the uniqueness of this opportunity,” Chandratillake stated.
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