Blinkx Pays Cash for Grab Media
Grab Media, a distributor of video content from top media companies to smaller sites, has been acquired by video search engine Blinkx in an “all cash transaction.” Blinkx and Grab Network Holdings have elected to not disclose the financial terms of the deal, though Blinkx CEO S. Brian Mukherjee describes it as being “modest in size.”
If anything, that comment implies that this wasn’t a home-run deal for Grab Media, which has been on sale for quite some time now. Earlier this year, the company had hired investment bank Mesa Capital to look for potential buyers, which at one point included Yahoo (this was before the company tried and failed to buy Dailymotion and Hulu).
The company’s chief revenue officer, Dave Jackson, recently left the company citing a “strategic change to the business,” according to sources. It’s not clear yet if Jackson’s exit and Grab’s decision to sell are related. Update: When VideoInk reached out to Grab Media for comment, we were told that Blinkx plans to hire the existing Grab executive team, including CEO Alvin Bowles and senior vice president of publisher development Justin Fagan. As for Jackson, he was not “part of the executive team at the time of the transaction.”
Over the past week, rumors began to circulate that Grab Media had been sold — it just wasn’t clear exactly to whom. As far as VideoInk could gather, it was a “second-tier” company, which put the possibility of renewed interest from Yahoo out of the question. It seems Blinkx, which says it will use Grab Media to incrementally boost its audience via recently launched syndication efforts, fits that bill. Blinkx plans to fully integrate Grab Media “within the year.”
“Grab Media will benefit from being part of a larger company, whose business model and growth strategy are strongly aligned with its own,” said Alvin Bowles, now former CEO of Grab Media, in an email statement to VideoInk.
Grab Media reaches 35 million uniques across its network of partner sites.Tags: Blinkx, Dailymotion, Dave Jackson, Grab Media, Hulu, Video Syndication, Yahoo!