There are always bigger fish

Video search engine blinkx has made a written proposal to buy MIVA for $1.20 per share in cash.

MIVA, formerly FindWhat, manages sponsored search (pay-per-click) advertising for a number of small search engines. In partnership with Ingenio, it launched a pay-per-call arm in 2005. Last year it launched a publisher ad network, and in December it debuted ALOT, which adds interactive elements, like widgets and customizable toolbars, to web properties. MIVA operates in Europe and North America.

According to MarketWatch, the blinkx proposal is a 54 percent premium above MIVA's closing price of $0.78 on August 7. The courting company believes MIVA's search ad network will be even more profitable with support from its video search technology and AdHoc ad platform.

"We believe that MIVA's shareholders would not be well-served by any delay in negotiating or completing the merger process, and that time and/or another round of restructuring plans will not significantly increase MIVA's valuation," wrote CEO/Founder Suranga Chandratillake of blinkx in a letter to MIVA's management.

MIVA rejected the offer, arguing the proposal "significantly undervalues [our] assets, including our technology, brand recognition and network," said Chairman Larry Weber.