Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

Blinkx shrugs off Edelman accusations after 50% share slump

Blinkx shrugs off Edelman accusations after 50% share slump

Blinkx (LON:BLNX) has come out fighting after allegations its video advertising services are not worth paying for.

Harvard professor and self-proclaimed web advertising guru Ben Edelman claimed in a blog post that customers paying for ads on its video search engine site were being scammed.

Edelman also voiced concerns about two of Blinkx’s key acquisitions, adware and spyware businesses Zango and AdOn, in his post entitled ‘The darker side of Blinkx’.

He said the website had “low-quality traffic, low-quality content, and invisible ads”.

The company responded to the claims and the share price slide in a stock exchange statement: “Blinkx strongly refutes the assertions made and conclusions drawn in the blog post.

“The company confirms there has been no material change to the operational and financial performance or outlook for the business, and that Fiscal Q3 trading was in line with management expectations.”

It highlighted a phrase at the bottom of the blog post, which points out that the consultant was paid for his efforts: “I prepared a portion of this article at the request of a client that prefers not to be listed by name.”

Edelman first directed readers to his blog on Tuesday on Twitter, saying: “Video ads begin when user leaves. Sneaky adware cheats advertisrs [sic].”

The shares jumped almost fourfold to 227p, but they have been in steady decline since the New Year.

Investors were left nursing a 50% fall at one point on Thursday, recovering slightly to 113p. 

View full BLNX profile View Profile

Blinkx Plc Timeline

Newswire
October 09 2015
Newswire
April 08 2015
Newswire
October 01 2014

Related Articles

Trading screen
June 13 2018
Following a root and branch overhaul, the company is setting its sights firmly on a SaaS business model as it reconnects with its technology pedigree
Network security
March 13 2018
The company was arguably late to change to a software-as-a-service model, but the change is beginning to take hold
mobile payment
June 22 2018
MySQUAR wants to beef up the mobile payments side of its operations in anticipation of a surge in demand for those services in a country where only 20% of the adult population have a bank account

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use