blinkx Acquires Burst Media For Expanded Reach
Video search company blinkx has agreed to acquire advertising network Burst Media for $30 million in cash and stock in a tie-up of two U.S.-based, London-listed companies.
San Francisco-based blinkx will pay 85% of the $30 million in stock and 15% in cash.
blinkx will acquire reach through Burst Media’s 130 million uniques, increasing its audience through embedding video or links to video on Burst’s publisher sites. Because Burst mostly focuses on display ads, adding video will bring the higher ad rates which video provides. Burst will maintain a separate brand for now, said Suranga Chandratillake, chief executive of blinkx.
“In Burst Media we acquired a large audience of users across the network they’ve built over the last 15 years,” said Chandratillake. “We can integrate a video experience across all those sites and drive more video views and sell more advertising.”
Burlington, Vt.-based Burst’s display ads sell at an average of $1.49 CPM whereas blinkx’s standard pre-rolls were priced at $20 in 2010.
Separately, blinkx has also been working to develop its video search engine across multiple platforms, including mobile devices, tablets and connected televisions, Chandratillake said.
blinkx, founded in 2005, also just announced that it expects to report revenues of more than $65 million in its current fiscal year, up 90% from last year, along with $6.7 million in operating profit before costs associated with this acquisition. The company had $52.8 million in cash on hand as of the end of March.