Blinkx, the popular video search engine, is planning to acquire online advertising company Burst Media.
The deal, which was announced Friday, stipulates that Blinkx will pay Burst $30 million in stock and cash. For the time being, Burst’s senior management will remain on the job to assist in the forthcoming transition.
According to Blinkx, Burst enjoyed better than $37 million in revenue for 2010, an improvement over the $31.4 million it generated in 2009.
Burst, however, posted earnings before interest, taxes, depreciation, and amortization in 2010. The company’s 2009 loss was $600,000.
Once the acquisition is complete, Blinkx says it will integrate “relevant video and video channels” into Burst’s expansive network of publisher sites.
“By fusing Blinkx’s unique patented technology and large video index with Burst’s massive reach, we will have the potential to create personalized, online television that is watched by hundreds of millions of users,” says Blinkx CEO Suranga Chandratillake.
Blinkx anticipates the acquisition to close in early May.
