Blinkx shares surge after response to academic’s critical blog
Online video search company Blinkx has seen its shares rise sharply after the company issued a detailed response to a blog from a Harvard academic who called into question the company's business model.
Blinkx "strongly refuted" the blog and conducted an internal and external review of the claims made in the blog, which has now been published on the company's website.
The blog in question was written by Harvard Business School professor Ben Edelman in February, and claimed that Blinkx had links with companies that used “deceptive tactics” to take fees and referral commissions. Blinkx stock plummeted by 40 per cent in wake of the blog.
Several days after the blog was published Edelman withdrew his assertion that the company Local Weather, was "part of Blinkx."
Blinkx' trading update said it expected revenue to be in the range of $245m (£147m) – $247m and adjusted EBITDA of $37m – $39m.
CEO Brian Mukherjee, said:
We are pleased with the performance of the business in FY2014, particularly with the successful integration of Rhythm in mobile video, despite the obvious distractions in the last quarter of the financial year
Blinkx shares are up five per cent so far.
(Google)