Blinkx Makes Another Bid for MIVA

If at first you don’t succeed…After a failed first attempt, video search company Blinkx (S UK:BLNX) announced today that is once again making an offer to buy pay-per-click ad company MIVA (S MIVA).
Blinkx, which has offices in San Francisco and London, is doing a little bargain hunting, as this current cash offer of 55 cents a share is far less than the $1.20 per share the company offered back in August. Blinkx dropped that initial bid in October.
The new bid represents a 108-percent premium over the closing price of MIVA’s shares on Nasdaq — at 26.4 cents — on Nov. 18, as Blinx’s notes in a statement. The company goes on to say that:

“[T]he MIVA business has reported a decline in cash for the past four quarters, and blinkx is concerned that valuable time has been wasted whilst MIVA’s resources dwindled, resulting in constraints on capital to facilitate growth. Moreover, MIVA has resorted to an expensive line of credit to fund future operations, which is also likely to impact future growth prospects in exchange for short-term working capital benefits.”

But despite all this, Blinkx sees an opportunity to integrate its AdHoc ad technology across MIVA’s consumer sites, monetize traffic from MIVA’s search ad network, and build on MIVA’s toolbar network.