Blinkx share price up as rebellion fails to derail turnaround aim
Embattled video search and advertising group Blinkx yesterday made tentative steps on the road to recovery, despite a shareholder revolt at its annual meeting that saw nearly 30 per cent of its investors vote against the appointment of one of its new directors.
Blinkx shares closed up 2.9 per cent at 35.25p after it revealed yesterday that Fidelity had increased its holdings to over five per cent and that all the resolutions at Blinkx’s shareholder meeting had passed.
The former chief executive of Rhythm NewMedia, Ujjal Kohli, a mobile advertising network that Blinkx acquired in December for $65m, faced the greatest rebellion yesterday after 29.2 per cent of shareholders voted against his election to the firm’s board. Nearly eight per cent of shareholders voted against the receipt of Blinkx’s financial statements.
Earlier this month, Blinkx warned that its first-half earnings would be $5m (£2.9m) lower than management expectations, causing its shares to lose more than half of their value.
The Aim-listed company blamed industry-wide issues around the efficiency and effectiveness of online advertising, as well as a lingering slide in demand following a disparaging blog on Blinkx’s business practices in January by Harvard professor Ben Edelman. Blinkx shares are down 83 per cent since its publication.