Blinkx IPO Goes Ahead

The promised Blinkx IPO went ahead on London’s AIM index today, with the online video search provider opening at 45p and closing at 63p. AIM is a sub-market to the London Stock Exchange. The creation of Blinkx PLC (BLNX) was the result of a tricky series of moves from UK-based data search company Autonomy – one of our commenters earned a free pony for explaining the scenario is plain English, but unfortunately couldn’t afford the $10,000 “handling fee”. The explanation follows:

(1) Autonomy developed some technology that was useful to Blinkx. It lent Blinkx that technology, plus a bunch of money, on condition it could buy Blink cheaply later.

(2) Blinkx agreed, and built a website using the Autonomy technology.

(3) Autonomy bought Blinkx cheaply per the above arrangement.

(4) Autonomy combined the technology it leant to Blinkx with the website Blinkx built using that technology. By combining the two things Autonomy created a more valuable new company, rather unhelpfully also called Blinkx.

(5) Autonomy now plans to sell that new company by floating it on the stock market.

Step 5 went ahead today, and appears to have been a success.

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2 Comments

  1. Jas

    This is the start of many more IPO’s to come,i believe this booom will last until at least 2010 !


  2. Victor

    Heres what they say: The Times says Blinkx had about 1.1m searches a day last month and about 700,000 unique users daily.

    Now a search of Alexa, Compete shows they have about 150K uniques a month…..

    Anyone know what the truth is on this one?