“Historically Blinkx has been focused on the supply side of the ecosystem,” Mukherjee said. “This acquisition represents our first step in bridging the gap between the supply side and the demand side, particularly in mobile.”
Mukherjee acknowledged that Blinkx is taking Lyfe Mobile on at a loss because the startup was not profitable at the time of the acquisition, but said it has a “ready-made team that understands mobile and will complement the ad network that we bought in Rhythm (New Media).”
Blinkx is a 10-year-old public company with headquarters in San Francisco and London. In addition to operating a video search engine and discovery platform, it also owns ad network Burst Media (acquired in 2011) and mobile-focused video ad platform Rhythm New Media (bought in 2013).
Blinkx’s stock took a hit on Jan. 30, falling 31%, when an associate professor at Harvard, Ben Edelman, published a blog post accusing Blinkx of deceptive adware install practices.
The company fired back by pointing to Edelman's financial ties to clients who have shorted the company's stock. Edelman responded in April with another blog post criticizing Blinkx’s additional business activities.
“From our standpoint, we’ve given a thorough and well-investigated response to (Edelman’s accusations),” Mukherjee said. “And we feel that … we devoted sufficient time and effort to responding and we’ve moved on.”