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    Archived articleThis is an archived article from 2008 - please note that any content within the article may be out of date.

    Blink and you'll miss it...

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    Profile picture of promethean
    promethean
    1 comment·4,131 Reads

    I'm not convinced by Blinkx business model, nor by their strategy... 

    Take today's RNS - they are still attempting to buy a company like MIVA that shows these deteriorating fundamentals.

    * MIVA has reported reduced revenues for the last eight consecutive quarters * Advertising spend related to the distribution of the Direct business' toolbars has declined for the last two quarters * Total installed toolbars declined 11% quarter-on-quarter from Q2'08 to Q3'08 * Significant un-reserved liabilities may remain related to the European restructuring

     

    Now i do understand that MIVA offer a distribution network.. but if their core businesses are declining, then BLNX could be buying a complete dog just for the benefit of expanded search.
    Apologies if i've misinterpreted the benefits here... but it seems a typical example of empire building by a CEO who clearly shouldn't be in the job.

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    LON:RTHM^D19

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    promethean

    There's a difference between being a creative innovator and being a business man. Suranga is not a business man... look at the latest interims...
    http://www.stockopedia.com/news/announcement/BLNX/081110blnx7706h.htm
    The company is bleeding cash at $5m each 6 months... on revenues of only $6m... and they want to buy a loss making business? crikey. He needs to wake up to to economic reality... Blinkx isn't google and doesn't have a business model.. He should be trying to sell his own company right now and create some shareholder value...

    Smacks of desperation in my opinion.

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