Video search firm blinkx buys marketing firm PVMG
blinkx, the world’s biggest online video search engine operator, has agreed to buy digital marketing agency Prime Visibility Media Group for $36 million (22 million pounds) in cash, and will partially fund the acquisition through a placing of new shares.
California-based blinkx, which is listed in London, said on Wednesday it planned to integrate PVMG’s text search platform with its own video search engine to help it deliver TV-style brand advertising online and expand its customer reach.
Online video is the fastest-growing advertising format but most large advertisers still prefer television as a mass medium for big brand campaigns.
“Brands continue to move an increasing amount of their TV advertising budgets to online video, but need to be able to reach an audience of equivalent size on the Web,” blinkx’s Chief Executive Surange Chandratillake said in a statement.
blinkx intends to place 6.5 million new shares, representing about 1.8 percent of its issued share capital, with new and existing investors—but said it would complete the acquisition with cash should the placing fail.
The company also said on Wednesday it expected to post a 60 percent sales increase to $44.6 million for the six months to end-September, and operating profit of $4.9 million, a 95 percent increase.