Ad market boost as blinkx buys Rhythm NewMedia for $65MN
Parent Category: | 04-12-2013
Aiming to satisfy growing brand advertiser demand for premium, integrated, cross-platform advertising campaigns at scale, blinkx has entered into an agreement to acquire Rhythm NewMedia.
Rhythm produces premium mobile video advertising technology platforms focused exclusively on smartphones and tablets and has been bought by the online video platform provider for $65 million.
blinkx has made its reputation offering tools for video search, discovery, distribution and monetisation. Explaining the rationale for its acquisition, the company says that Rhythm operates a mobile equivalent of its own ecosystem and that it will now be able to extend its reach across platforms.
It adds that the deal will accelerate the growth of its mobile video advertising business, the fastest growing segment within online advertising which, quoting eMarketer data, it expects to grow over seven-fold to $31 billion from 2012 to 2017. It will also enable blinkx to enhance and upgrade relationships with premium media.
Commenting on the deal, blinkx CEO Brian Mukherjee said: "In Rhythm, we see a perfect strategic alignment with our vision to connect consumers with brands through professionally generated content, across any Internet connected device, anywhere in the world. This acquisition aligns with our strategy to expand our digital video expertise to the mobile sector at scale. Rhythm brings a talented team with deep domain expertise, technology and products, along with a rapidly growing revenue stream that will add to our organic mobile efforts."
Added Ujjal Kohli, CEO of Rhythm NewMedia: "Rhythm and blinkx possess a joint competency in delivering turnkey, dynamic and creative online advertising solutions, backed by industry leading technology. This is a transaction between two highly compatible companies that will bring unparalleled depth and breadth to the evolving digital video advertising space. We are thrilled to join the blinkx team and help build on its established digital video search, discovery, distribution and monetisation foundation."