Blinkx is trying to buy search ad network Miva for USD40.3m in a bid to boost its advertising revenues. The cash bid, for USD1.20 a share, represents a 54% premium on MIVA’s closing stock price on August 7.
A takeover would build on an existing partnership, as Miva already has a deal to deliver ads on Blinkx’s video search engine. The firm also operates a network of consumer sites and offers contextual pay-per-click ads.
The bid is part of Blinkx aggressive strategy to grow its advertising business. Last month, the firm launched a program that lets third-party websites search Blinkx for videos and publish the results. In return, Blinkx sells ads against the search results, splitting revenues with the distributor. Earlier his year, the firm also inked a deal to place ads on Next New Networks’ web TV channels, adding to existing partners such as the Guardian, the BBC, Fox News and CNN.
The announcement comes after media reports in May suggested that News Corp was preparing a bid worth around USD290m for Blinkx, while Google was also interested in buying the firm.