Blinkx makes 39 million offer for MIVA
Adds CEO comments, reaction, share price)
LONDON, Aug 8 (Reuters) - London-listed Blinkx Plc (BLNX.L: Quote, Profile, Research, Stock Buzz), an Internet video search company, has proposed buying U.S. search-based ad network Miva (MIVA.O: Quote, Profile, Research, Stock Buzz) for $39 million to accelerate its expansion in targeted Web advertising.
Blinkx Chief Executive Suranga Chandratillake said buying the Nasdaq-listed company would allow Blinkx to deploy its technology across Miva's portfolio of consumer sites.
"Miva is an obvious match," he told Reuters in a telephone interview. "They have an advanced distribution network business and a toolbar business that is also strong."
Shares in Blinkx were up 2.6 percent at 30 pence at 1058 GMT, as PiperJaffray analyst Rajeev Bahl said it could be a transformational deal.
"Blinkx's proposed bid for Miva has the potential to significantly change the shape of the business, marrying Blinkx's advanced search and ad-matching capabilities to Miva's material base of search-based advertising revenue," he said in a note.
Chandratillake said the deal would be a shortcut in the company's strategy of growing its targeted advertising revenues, but he would walk away if he could not get the right terms.
"We think it can be done at this price, but we are not committed to doing it," he said.
The approach, which has been made in a letter to Miva's board, proposes paying $1.20 a share -- a 54 percent premium on Miva's closing price on Thursday -- and would be funded entirely in cash, he said. (Reporting by Paul Sandle, editing by Will Waterman)
