Blinkx acquires mobile ad-targeting startup Lyfe
What: The video search engine Blinkx has acquired 3-year-old startup Lyfe Mobile, which offers targeted ads on location-based analytics, in an all-cash transaction.
Why it matters: The acquisition it is part of Blinkx´ extension into the programmatic value chain, which has been a core strategic initiative of the Company.
Blinkx, the the Internet media platform that connects consumers with brands through generated content, has acquired Santa Monica, Calif-based Lyfe Mobile, a 3-year-old startup that offers targeted ads based on users geographic location and other location-based analytics, in an all-cash transaction.
This company has also a wide range of mobile advertising formats, including mobile display, video and native ads with customized, dynamic audience segmentation and targeting capabilities. Its´ targeting capabilities and API recognize a mobile user's recent activities , environment , traffic, population density, as well as campaign-management tools to help brands deliver targeted ads. These are later combined with GPS data to deliver audience-targeting features.
Following the acquisition, Blinkx will hire the 11 member LYFE Mobile team, which includes a group of engineers, data scientists and business staff.
This acquisition it is part of its´ continued extension into the demand side of the programmatic value chain, which has been a core strategic initiative of the Company.
“Historically Blinkx has been focused on the supply side of the ecosystem. This acquisition represents our first step in bridging the gap between the supply side and the demand side, particularly in mobile,” Blinkx CEO Subhransu Brian Mukherjee said.
According to Mukherjee , Blinkx is taking Lyfe Mobile on at a loss because the startup was not profitable at the time of the acquisition, but he suggested that it has a “ready-made team that understands mobile and will complement the ad network that we bought in Rhythm (New Media).”
A 10-year-old public company , Blinkx , has headquarters in San Francisco and London.The company owns ad network Burst Media (acquired in 2011) and mobile-focused video ad platform Rhythm New Media (bought in 2013).Its´ stock fell 31% on Jan. 30, after associate professor at Harvard, Ben Edelman, published a blog post accusing Blinkx of deceiving adware install practices.The company responded pointing to Edelman's supposed financial ties to clients who have shorted the company's stock.
“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,”he added.