blinkx Withdraws Proposal to Acquire Miva
SAN FRANCISCO, CALIF. – October 6, 2008 – blinkx plc (“blinkx”) (LSE AIM: BLNX) today announced that it has withdrawn its proposal to acquire MIVA, Inc. (“MIVA”) (NASDAQ:MIVA).
“Our goal in pursuing a combination of blinkx and MIVA would have been mutually beneficial to both companies’ shareholders, employees, and customers. Our all-cash premium proposal was an attractive option for MIVA shareholders. It is unfortunate for MIVA shareholders, however, that despite our best efforts, MIVA’s Board and management have not embraced our proposal to combine our companies,” said Suranga Chandratillake, CEO and founder of blinkx.
“The large premium blinkx offered in our initial proposal is even more significant today in light of MIVA’s second quarter earnings miss, subsequent downward revision of annual guidance, and public disclosure related to restructuring of the Media EU business. By choosing not to engage in substantive discussions in any material respect and an agreement with blinkx, MIVA Board and management in our view have failed to give due consideration to a transaction that had a uniquely attractive opportunity for MIVA shareholders, particularly in light of several challenges MIVA faces in the near term.”
blinkx is a disciplined buyer and will only pursue transactions that make sound financial sense for our shareholders. While the internet advertising industry remains an attractive, high-growth opportunity, there are considerable challenges and risks in the business for MIVA, including: risk and cost associated with the new technology platform, continuously deteriorating cash position, and continued deterioration in their Media business. We were committed to having a constructive dialogue and negotiation to conclude an agreement, but we did not find MIVA Board and management willing to cooperate.
We have a talented team in place and a compelling plan to grow our business through continued innovation and monetization of the blinkx technology. While MIVA would have accelerated our strategy, we have an exciting future ahead of us and will continue to focus on and progress toward our goals,” said Chandratillake.
blinkx plc (LSE AIM: BLNX) is the world’s largest and most advanced video search engine. Today, blinkx has indexed more than 26 million hours of audio, video, viral and TV content, and made it fully searchable and available on demand. blinkx’s founders set out to solve a significant challenge – as TV and user-generated content on the Web explode, keyword-based search technologies only scratch the surface. blinkx’s patented search technologies listen to – and even see – the Web, helping users enjoy a breadth and accuracy of search results not available elsewhere. In addition, blinkx powers the video search for many of the world’s most frequented sites. blinkx is based in San Francisco and London. More information is available at www.blinkx.com.
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