Blinkx, the video search engine has announced a new acquisition of the ad company, Burst Media. According to the news this deal has been closed for $30million and is intended to help build personalized online TV channels for Blinkx as it hopes to take over the hugely appealing advertisers.
Blinkx also hopes that this deal would be advantageous as it will also gain the audience of Burst, which happens to expand over 130 million users. The announcement went on including the trading update prediction which looks forward to a sharp rise in the full-year revenue of over $65 million, which will be like 90% more than the last year. Blinkx already expects for an operating profit after the current analyst consensus to be estimated around $6.7 million for the year ended of March 31.The public announcement of this deal has left both the shares of Burst beefing up its shares to 2.5% to 113 pence on Friday, while shares in Burst kept around 300% to 22 pence. The offer also signifies a premium of almost 400% to the mid-market closing price on Thursday.
Furthermore the deal gives Blinkx the potential of creating video channels targeted for exclusive audiences sharing common interests, which will then be matched with Burst's network of publishers. Which will on the other hand, serve them with a huge online video audience for attracting advertisers. C.E.O. of Blinks, Suranga Chandratillake, himself stated that "Up until now, the primary barrier to further television advertising budgets moving online has been online video's inability to match the sheer scale of audience that television can deliver."
Moreover, Chandratillake also went on saying that "We are extremely excited about the acquisition as it will allow us to overcome that challenge: by fusing Blinkx's unique patented technology and large video index with Burst's massive reach, we will have the potential to create personalized, online television that is watched by hundreds of millions of users.”
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