The Boards of blinkx plc (AIM:BLNX), the world’s largest video search engine (“blinkx” or the “Company”) and Prime Visibility Media Group, Inc., a leading online performance advertising network and digital marketing agency (“PVMG”) are pleased to announce today that they have entered into a definitive stock purchase agreement (the “Purchase Agreement”) pursuant to which blinkx has acquired the entire issued and to be issued shares of common stock and the entire issued and to be issued shares of preferred stock of PVMG (the “PVMG Shares”) for an aggregate consideration of US$36 million (£22.4 million), to be satisfied in cash (the “Acquisition”).

The Acquisition consideration of US$36 million (£22.4 million) will be funded through blinkx’s existing cash balances and the proceeds from a proposed placing of new ordinary shares in the capital of the Company (the “Placing”) announced separately today. A separate announcement is being issued by the Company this morning which will contain details of the Placing.

In the event that the Placing does not complete for any reason, the Acquisition will be funded entirely from the Company’s existing cash balances.

Further details of the Acquisition are set out in the Appendix to this document, available at http://www.blinkx.com/article/acquisition-prime-visibility-media-group-inc-blinkx-plc~1667.

Transaction Highlights

PVMG’s network averages over 600 advertisers (measured over the 6 month period to 30 September 2011) and 350 publishers. Processing 1.5 billion queries, and generating 14 million ad interactions every day, PVMG has the reach and volume to meet the demands of metric-driven advertisers and enables publishers to monetise their traffic from multiple forms of advertising.

Following the Acquisition, blinkx expects to integrate PVMG’s platform with blinkx’s so as to enable the blinkx video search engine to respond to a portion of PVMG’s 1.5 billion daily queries with relevant video results. Where available these videos can be paired with rich media video ads that typically monetise at a higher rate.

In September 2011, the average effective cost per mille (eCPM) of PVMG’s sponsored text advertisements was approximately US$5.00, while blinkx’s standard untargeted sponsored video advertisements were priced at US$13.00. blinkx believes that the combined group will be able to realise some of the differential between these two rates to generate incremental revenue.

PVMG also operates a digital marketing agency which offers consulting services to assist customers in developing Internet marketing strategies to establish and enhance their digital presence, through Search Engine Optimisation (SEO), Search Engine Marketing (SEM), social media, email and mobile marketing services.

Following the Acquisition, blinkx expects that the agency business will provide useful insights into its brands’ Internet marketing strategies, which will enable blinkx to offer more compelling advertising solutions.

PVMG is led by a team of seasoned executives with deep and diverse expertise in the search, rich media, mobile and agency sectors of the digital marketing industry. blinkx expects to benefit from the strategic addition of PVMG’s senior leadership in key areas across its business. PVMG CEO, S. Brian Mukherjee, will be joining blinkx as EVP and GM for Search and Mobile.

PVMG’s consolidated audited financial statements for its financial year ending 31 December 2010 show gross assets of US$22.4 million, and gross revenues of US$29.9 million, and a net loss for the period of US$389,511.

The integration is expected to begin immediately, and by the end of the financial year ending 31 March 2013 the Acquisition is expected to have an annual revenue run-rate of between US$35 million and US$40 million.

Commenting on the Acquisition, Suranga Chandratillake, CEO of blinkx, said:

“Online video advertising continues to be the fastest growing format by a significant margin, and is forecast to reach $3.5 billion over the next three years. Brands continue to move an increasing amount of their TV advertising budgets to online video, but need to be able to reach an audience of equivalent size on the Web. We’re extremely excited about the Acquisition because the integration of our video search engine with PVMG’s text search platform will enable us to tap into a new audience of intent-driven consumers and deliver TV-style brand advertising to them, which gives us the opportunity to expand our customer reach and increase PVMG’s margins over time.”

Commenting on the Acquisition, S. Brian Mukherjee, CEO of Prime Visibility Media Group, said:

“As a close knit team with the shared sense of optimism to lead the next revolution of digital advertising, we are proud of our accomplishments at PVMG. We believe that the Acquisition puts us at the very heart of one of the most dynamic sectors of the digital advertising industry – online video. The combination of our powerful, proven high frequency transaction engine and audience reach with blinkx’s unrivalled video search technology and vast content index unlocks a tremendous opportunity for us to develop high value online video advertising solutions.”

blinkx Current Trading

Trading for the first half of the financial year ending 31 March 2012 has been strong. For the half year period to 30 September 2011, the Company expects to report revenues of approximately US$44.6 million, an increase of over 60% from the corresponding period ended 30 September 2010, and to report EBITDA for the half year of approximately US$5.7 million and an operating profit for the half year of approximately US$4.9 million , an increase of approximately 95% over the corresponding period ended 30 September 2010. For the half year period to 30 September 2011, blinkx expects to report cash and cash equivalents of approximately US$52.9 million. blinkx is pleased to report that the integration of Burst Media Corporation is proceeding very well. blinkx expects that the cost of restructuring will be approximately US$2.5 million; less than the market predicted US$4.5 million. The Company has also seen continued growth of the AdHoc advertising platform with new brands, including Kelloggs, Disney, Pimms and Nivea.
blinkx expects to announce its half year results on 11 November 2011.

PVMG Overview

Established in December 2007, and headquartered in New York, NY, Prime Visibility Media Group, Inc., is a digital marketing holding company with three operating units: Prime Visibility, LLC an award winning search marketing agency; AdOn Network, Inc., a long tail performance, cost-per-click advertising network; and Predic.tv, LLC, an early stage rich media advertising company, which intends to target premium online advertisers and publishers.

The online media value chain (comprising CDNs, OVPs and Video Advertising Networks) is forecast to generate $2.3 billion in top line revenues in 2010, with 56.5% of that figure linked predominantly to CDN-powered video distribution, video platform services and content monetization. The combined market grew by an estimated 30% in 2010. Video-based CDN contracts, OVPs and video advertising networks together have carved out a $1.3 billion swatch of the market total. The video value chain share grew by 40.4% in 2010.

This extensive report condenses comparative online video market data and analysis by solutions segment, with respective growth rates combined to yield historical market value and forecasts. Value chain analytics are built on AccuStream Research competencies in total video views, CDN (video contract, and total CDN revenue), OVPs (accounts, pricing and revenue) and video advertising networks (revenue calculated by provider, billing models, and specialty: pre-roll, in-banner, overlay and search). Each of the reports six sections examine distinct market segment dynamics in detail, together with vendors and providers, their business models, unique accounts, revenue (trailing and forecast) and core product offerings.

Specific company analysis is augmented with in-depth Q & As including Akamai, Limelight Networks, Internap, Level 3, Mirror Image, Brightcove, thePlatform, Kaltura, Ooyala, Move Networks, Kyte, KickApps, Kit Digital, Sorenson Media, Vmix, DigitalSmiths, Auditude, RAMP, Magnify.net, Mixpo, Affine Systems, Tremor Media, SpotXchange, Adap.tv, VideoEgg, Eyewonder, Pointroll, Eyeblaster, YuMe, ScanScout, BBE, Blinkx, Audience Science and many more. OVPs are the fastest growing link in the video value chain, with a 71% top line revenue upsurge in 2010 to $480 million; OVPs are forecast to capture 36.4% of the video solutions segment, and move ahead of CDNs at 35% for the first time; video ad networks have a 28.6% share of the market. OVP total accounts increased by 118% in 2010, CDNs by 26.7%, and combined service 23,333 accounts. MRR comparisons for CDNs and OVPs are provided. This report is an essential market intelligence tool for VCs looking at new and expanding investment opportunities inside the online and mobile video business segment, publishers, rights holders, advertisers, ad networks, CDN providers, hosting networks and OVPs.

Executive Summary:

The online media value chain (comprising CDNs, OVPs and Video Advertising Networks) is forecast to generate $2.3 billion in top line revenues in 2010, with 56.5% of that figure linked predominantly to CDN-powered video distribution, video platform services and content monetization. The combined market grew by an estimated 30% in 2010.

Video-based CDN contracts, OVPs and video advertising networks together have carved out a $1.3 billion swatch of the market total, according a report published by AccuStream Research. The video value chain share grew by 40.4% in 2010.

The report, Video Value Chain 2010 2012: CDNs, OVPs and Video Advertising Networks, condenses extensive comparative online video market research data and analysis by solutions segment, with respective growth rates combined to yield historical market value and forecasts.

Value chain analytics are built on AccuStream Research competencies in total video views, CDN (video contract, and total CDN revenue), OVPs (accounts, pricing and revenue) and video advertising networks (revenue calculated by provider, billing models, and specialty: pre-roll, in-banner, overlay and search).

Each of the reports six sections examine distinct market segment dynamics in detail, together with vendors and providers, their business models, unique accounts, revenue (trailing and forecast) and core product offerings.

Specific company analysis is augmented with in-depth Q & As including Akamai, Limelight Networks, Internap, Level 3, Mirror Image, Brightcove, thePlatform, Kaltura, Ooyala, Move Networks, Kyte, KickApps, Kit Digital, Sorenson Media, Vmix, DigitalSmiths, Auditude, RAMP, Magnify.net, Mixpo, Affine Systems, Tremor Media, SpotXchange, Adap.tv, VideoEgg, Eyewonder, Pointroll, Eyeblaster, YuMe, ScanScout, BBE, Blinkx, Audience Science and many more.

OVPs are the fastest growing link in the video value chain, with a 71% top line revenue upsurge in 2010 to $480 million; OVPs are forecast to capture 36.4% of the video solutions segment, and move ahead of CDNs at 35% for the first time; video ad networks have a 28.6% share of the market. OVP total accounts increased by 118% in 2010, CDNs by 26.7%, and combined service 23,333 accounts. MRR comparisons for CDNs and OVPs are provided.

Key Topics Covered:

EXECUTIVE SUMMARY
The Online Media Value Chain Posts Growth of 30% in 2010
SECTION ONE The Online Media Value Chain Posts Growth of 30% in 2010
SECTION TWO CDN 2010 – 2012: Revenue, Cap Ex, R & D, Operational Performance Summary Analysis
SECTION THREE OVP Market Analysis 2010 – 2012
SECTION FOUR OVP Sub-Segment Analysis: Video Ad Serving, Indexing and Monetization
SECTION FIVE Video Advertising Networks 2010 – 2012
SECTION SIX In-Banner Video Advertising Platform Analytics 2010 – 2012

Companies Mentioned:

Akamai
Limelight Networks
Internap
Level 3
Mirror Image
Brightcove
thePlatform
Kaltura
Ooyala
Move Networks
Kyte
KickApps
Kit Digital
Sorenson Media
Vmix
DigitalSmiths
Auditude
RAMP
Magnify.net
Mixpo
Affine Systems
Tremor Media
SpotXchange
Adap.tv
VideoEgg
Eyewonder
Pointroll
Eyeblaster
Blinkx
Audience Science

For more information visit http://www.researchandmarkets.com/research/71a98d/the_online_value_c

Online video advertising networks and media ad serving platforms are forecast to generate $377 million in video CPM share and fee-based revenue in 2010, an increase of 41% over the prior year comparable. This report, Video Advertising Networks and Media Platforms: Revenue Forecasts 2010 – 2012, tallies provider and segment revenue by analyzing video inventory, sellout rates, CPMs, participation percentages and serving fee components of gross media spend. That data is aligned with business model analytics surrounding in-banner video serving, premium and remnant/3rd party pre-roll sales and ad serving, video overlays, search and the emerging mobile platform, each presented and detailed.

The report’s historical (2007-2009), current year and extended revenue forecast is amplified and supported by detailed industry Q & As, plus rigorous business model analysis spanning CPM share to inventory barter. Each video advertising network and platform is analyzed by total inventory (exclusive, non-exclusive, monthly and annually), business model, sell-out percentages, CPMs by avail format, media spend and related revenue by provider, R & D initiatives and strategies to engage Smartphone users. In-banner video and rich media platforms Eyewonder, Pointroll, Eyeblaster and Googles DoubleClick are user reach and inventory scale market leaders of the multi-screen platform advertising group. 3rd party video networks representing premium pre-roll inventory, overlays and promotional executions analyzed in the report include BBE, Tremor Media, YuMe, ScanScout, Adap.tv, Magnify.net, SpotXChange, Turnhere, Wizzard Media and VideoEgg, among others.
Search and discovery platforms and services include both Blinkx and Truveo. Video advertising networks with CPM share business models joined with dedicated ad sales teams generate 75% of the segments revenue. Multi-screen video inventory continues to grow at rates faster than publisher ability to sell it, positioning networks with sales proficiency for increasing participation in a market with substantial revenue share upside. Revenue growth and ongoing consolidation within the video advertising platform segment is driven by publisher exploitation ambitions requiring powerful, vertically integrated solutions opportunistically endorsed by strategic acquisitors.

Key Topics Covered:

- Market Trends and Business Dynamics 2010-2012
- Online Video Advertising Platforms, Networks, Auctions and Targeting Solutions: Revenue 2007 2012
- 3rd Party Video Ad Networks with Sales Capability Generate 75% of the Segments Revenue
- In-Banner Video Platform and 3rd Party Pre Roll Ad Network Revenue Comparison: 2007 2012
- 3rd Party Video Ad Networks With Sales Teams: Gross Revenue Growth 2012
- In-Banner Ad Serving Platforms Forecast To Grow Revenue by 27.3% in 2010
- Video Advertising Networks Encompass the Following Broad Solutions Categories:
- Video Advertising Platform and Network Business Trends: 2010 2012
- The Video Advertising Network and Platform Market: 2010 – 2012
- Video Advertising Network and Platforms: Core Product Solutions and Market Positioning Comparison
- Video Advertising Networks and Platforms: Cpm Share/Participation Analysis
- Online Video Advertising Platforms, Solutions Providers, Auctions and Networks
- Online Video Advertising Networks Terminology

Section One
- Market Trends and Business Dynamics 2010 2012
- Online Video Advertising Platforms, Networks Auctions and Targeting Solutions: Revenue 2007 – 2012
- Online Video Advertising Platforms, Solutions Providers, Auctions and Networks
- 3rd Party Video Ad Networks with Sales Capability Generate 75% of the Segments Revenue
- Online Video Advertising Networks and Platforms: Comparative Revenue Analytics: 2007 – 2012
- Video Ad Network Inventory Expanded by 34% in 2009
- Video Advertising Network Inventory Growth: 2008 – 2009
- Market Growth Drivers: 2010 2012
- 3rd Party Pre Roll Video Networks: Revenue Trends 2007 – 2010
- Market Growth Drivers: 2010 2012
- In-Banner Ad Serving Platforms Forecast To Grow Revenue by 27.3% in 2010
- In Banner Ad Serving Platforms: Revenue 2007 – 2012
- Online Video Advertising Platforms: In-Banner Delivery Specialists
- Online Video Advertising Platforms: In-Banner Gross Media Spend
- In-Banner Gross Media Spend Rose by 8.5% in 2009
- In-Page Video Ad Impressions and Gross Media Spend: 2005 – 2009

Companies Mentioned:

Adap.Tv
Audience Science
Blinkx
Truveo
BBE
Scanscout
Spotxchange
Tremor Media
Vidsense
Videoegg
Wizzard Media
Yume Inc
Eyewonder
Eyeblaster
Pointroll
For more information visit http://www.researchandmarkets.com/research/930ed3/video_advertising

A well-respected expert on both online advertising and digital media, Grosso has led his team to create long-term partnerships with global brands such as Reuters, MTV Networks, RealNetworks, Nokia, Microsoft and Shell. A digital media veteran with more than a decade of international experience, Grosso is well-qualified to offer unique insight into the world of online video advertising.

Since inception, blinkx has signed more than 530 media partners and indexed over 35 million hours of video content on the Web, fueling its reputation as one of the most intelligent search engines available today.

blinkx’s unrivaled contextual advertising platform for online video, blinkx AdHoc, is designed to enable blinkx’s media partners to place highly relevant advertising against their video content on the Web. blinkx’s AdHoc platform has revolutionized video advertising by matching compelling, customized, TV-style ads to audiences on the Video Web. It is unique because it was built from the ground up to address rich media, resulting in more effective marketing for advertisers, higher monetization for content owners, and, most importantly, a useful, non-disruptive experience for users.

About blinkx

blinkx plc (LSE AIM: BLNX) is the world’s largest and most advanced video search engine. Today, blinkx has indexed more than 35 million hours of audio, video, viral and TV content, and made it fully searchable and available on demand. blinkx’s founders set out to solve a significant challenge – as TV and user-generated content on the Web explode, keyword-based search technologies only scratch the surface. blinkx’s patented search technologies listen to – and even see – the Web, helping users enjoy a breadth and accuracy of search results not available elsewhere. In addition, blinkx powers the video search for many of the world’s most frequented sites. blinkx is based in San Francisco and London. More information is available at www.blinkx.com

With more then fifteen years of experience, Len has evangelized and sold new technology to key decision makers including online publishers, agencies and clients, in addition to maintaining responsibility for over $40 million in online ad revenue. He has also been recognized by peers and management, winning both quantitative sales awards as well as receiving acknowledgement from colleagues.

Being among the first online sales persons in the digital industry, Len has been written about in BusinessWeek regarding the online advertising marketplace. Additionally, he has consulted with companies including Olive Garden, America Online, Jet Blue, Sony and more. Known for his ability to quickly identify sales opportunities, Len takes great pride in understanding client’s marketing and business goals. He thrives on presenting dynamic products and services that leverage bottom line results. Adopting innovative approaches and concepts, Len demonstrates a solid grasp on revolutionary marketing solutions, delivering groundbreaking ideas that impact heavily on the digital arena.

Prior to joining SpotXchange, Len was national sales director at Knocknock, formerly known as Avant Interactive, where he maintained responsibility for revenue generation and implementation of pioneering digital marketing solutions. His clients included Lifetime, ABC, CBS, NBC, AT& T, Scripps Networks, Honda and Ford, to name a few. Len strongly believes that the key to his success is founded on his ability to build solid relationships with both clients and agencies. In addition to Avant, his career includes time with Scripps Networks, Mobliss, Inc., Claria Corporation and DoubleClick. At DoubleClick he served as senior strategic sales person selling advertising on DoubleClick’s network of over 1100 highly rated web sites.

Based in Colorado and launched in November 2006, SpotXchange is an online video advertising network that provides sophisticated targeting, a hands-on client services team, reporting, and a transparent marketplace that meets publisher and advertisers online video advertising needs.

About SpotXchange
The SpotXchange patent-pending online video advertising platform received the 2007 Streaming Media Readers’ Choice Award for BEST VIDEO AD PLATFORM. The company was spun off from Colorado-based digital marketing and technology company, Booyah Networks in March 2007. Booyah Networks ranked 23rd on the 2006 Inc. 500. Clients and partners include Voxant, Blinkx, Adap.tv, LiveVideo.com, NeoEdge, United Press International and others.

Torrey Newman-Larson joins the company as the vice president of sales, direct response. She comes to SpotXchange from Q Interactive where she managed sales in lead generation, e-mail and display services.Erica Harte joins SpotXchange’s team of client services managers. Erica will manage online video advertising campaigns for the company’s clients. Prior to SpotXchange, Erica spent time at JoeBrands and Karsh + Hagan.

Based in Colorado and launched in November 2006, the SpotXchange online video advertising network allows advertisers and publishers to buy and sell online video advertising in a real-time auction marketplace. The patent-pending technology takes the best practices in sponsored search-self-service tools, free market bidding, precision targeting, transparent reporting, real-time tracking and optimization-and applies those tools to a comprehensive marketplace of online video ad inventory. The marketplace currently represents over one billion monthly impressions.

About SpotXchange
The SpotXchange patent-pending online video advertising platform received the 2007 Streaming Media Readers’ Choice Award for BEST VIDEO AD PLATFORM. The company was spun off from Colorado-based digital marketing and technology company, Booyah Networks in March 2007. Booyah Networks ranked 23rd on the 2006 Inc. 500. Clients and partners include Voxant, Blinkx, Internap, LiveVideo.com, NeoEdge, United Press International and others.