Harvard professor Ben Edelman’s blog post that claimed Blinkx had links with companies that use “deceptive tactics” has caused up to $15m (£8.83m) in damage to the online video advertising firm’s sales.
Blinkx indicated the level of damage that had been caused during its results call with analysts this morning, Numis analyst Paul Richards said:
The group indicates that the blog impacted revenues by $10-15m in the year as clients paused spend, but that following the Capital Markets Day and detailed rebuttal in April, client spend has started to return to normal from May.
Even since its detailed response to Edelman's allegations Blinkx’s share price has continued to tumble, despite some small signs of recovery. It currently trades down nearly 60 per cent from before the blog was posted at 85p this morning, from a high of 200p at the beginning of January.