Blinkx shares plunge 30pc on academic blog

 
Oliver Smith
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BLINKX, the online video search company spun out of Mike Lynch’s Autonomy, saw its share price plummet by 30 per cent yesterday after a Harvard professor published a blog post questioning the firm’s advertising tactics.

In an article published on Tuesday Professor Benjamin Edelman claimed that Blinkx had links with companies that used “deceptive tactics” to take fees and referral commissions by making it appear that their adverts had attracted customers.

In a statement Blinkx said it, “strongly refutes the assertions made and conclusions drawn in the blog post.”

Numis analyst Paul Richards stood by Blinkx: “We view the sharp fall in the group’s shares as a buying opportunity.” Blinkx’s share price closed at 122.4p a share.