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Blinkx’s 2007 IPO: How the Video Search Company Went Public

Autonomy planned to spin off Blinkx so the video-search company could focus on consumer search. Blinkx floated on London’s AIM in May 2007.
From TheFinanceBase Team2 min to read
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Blinkx went public on London’s AIM market in May 2007 as part of a planned spin-off from Autonomy, its parent company. The separation was intended to let Blinkx focus on consumer video search while Autonomy concentrated on enterprise search. Contemporary reports also described Blinkx’s speech-indexing technology and its first day of trading.

Why Autonomy planned to spin off Blinkx

In April 2007, Network World reported that Autonomy planned to exercise an option over Blinkx shares, combine Blinkx with Autonomy’s consumer unit, and spin off the resulting business through a London AIM flotation expected the following month. The report described the transaction as a way to separate two different businesses: Autonomy sold enterprise-search software, while Blinkx focused on consumer video search. The stated strategic rationale was to let Blinkx concentrate on its market and clients. Network World’s April 25, 2007 report said Autonomy would retain 10% of Blinkx’s ordinary shares after the IPO; the transaction was still subject to tax clearances and customary conditions.

A day later, The Guardian also described the planned demerger and expected AIM listing. Its comments about what analysts expected from the offering were market commentary, not confirmed transaction terms.

What Blinkx’s video search engine did

Network World reported in April 2007 that Blinkx had indexed about 7 million hours of video. Unlike a search based only on titles or other metadata, Blinkx transcribed and indexed speech, allowing people to search for words spoken in videos. The report also said the company made deals with content owners and licensed its service to other internet companies. Those descriptions refer to Blinkx as reported in 2007.

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From proposed flotation to first-day trading

  1. April 25, 2007: Network World reported that Blinkx was expected to go public the next month and outlined Autonomy’s planned option exercise, combination with its consumer unit, and spin-off.
  2. April 26, 2007: The Guardian reported on the planned demerger and expected AIM listing.
  3. May 2007: Blinkx’s preserved company history says the company floated on London’s AIM.
  4. May 25, 2007: Search Engine Watch reported that Blinkx began trading at 45 pence per share and closed at 65 pence, a 40% first-day rise. It reported a market capitalization of £180 million, or $355 million. These are the publication’s reported trading figures, not the announced IPO terms. Search Engine Watch’s first-day account

What the reported valuation figures mean

Network World relayed a possible valuation range of $150 million to $500 million, attributing it to The Times quoting financial analysts. That range was a pre-listing estimate, not a verified final offer valuation. It should not be confused with Search Engine Watch’s later account of Blinkx’s first-day opening price, closing price, and reported market capitalization.

The available contemporary reporting does not establish final offer terms, proceeds, or allocation. Network World said the transaction remained subject to conditions, and reported that representatives of Blinkx and Autonomy declined to comment. Blinkx’s preserved company history confirms the May 2007 flotation but is a retrospective account preserved as of January 7, 2015; it does not supply those missing transaction details.

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