Hallmark Channel partnership leads Blinkx shares to recovery
ONLINE video search company Blinkx started to turn around an otherwise disastrous week yesterday with the announcement that it has done a major content deal with the US Hallmark TV Channel.
Blinkx saw its share price collapse over 30 per cent last Thursday after a critical blog post by a Harvard business professor raised concerns over the firm’s allegedly questionable advertising tactics.
Blinkx responded to the article with a statement that it “strongly refutes the assertions made and conclusions drawn in the blog post.”
However, Blinkx’s share price closed at 127.5p last week, representing a 27 per cent drop from before the blog post was published.
“Leveraging its unique AdHoc platform, Blinkx will place contextually relevant advertising against these videos and share resulting revenue,” said Blinkx on the Hallmark deal.
Yesterday’s announcement put Blinkx on the road to recovery, giving its share price a near four per cent boost to close at 132.5p per share.
Investors appear to be regaining some confidence in the business which saw profits rise over 90 per cent last year and revenues that grew over 30 per cent to $111.5m (£68.4m) during the six months to September 2013.