Blinkx still after MIVA
November 20, 2008
Despite dropping its pursuit of pay-per-click ad network MIVA last month after being rebuffed, Blinkx's now restarted the reverse-takeover bid after recording strong earnings last week ($19 million), the new bid is far less than the$41 million first offered back in August, but is still 108 percent up on MIVA's Tuesday close.
MIVA's share price has dropped by 85 percent this year and the outfit last week raised a $10 million credit facility after seeing Q3 losses widen from $3.3 million to $10.5 million. Blinkx said the buy is still attractive to shareholders "in light of issues in the MIVA business and current market conditions; however, because of MIVA's continued loss-making performance and rapidly declining cash position, time is of the essence". Blinkx itself last week tripled its year-on-year revenue between April and September. CEO Suranga Chandratillake today: "We trust that the MIVA board will recognise that expediency is critical to realising the benefits of this opportunity and providing stability to MIVA shareholders, customers and employees."