The proposal, funded from existing cash, represents a 54% premium above the $0.78 closing price of Miva stock yesterday and a 36% premium over the average closing price for the one month prior to August 7.
In the letter to Miva, Suranga Chandratillake, Blinkx chief executive and founder, said that the deal represented the quickest way for shareholders to realise the value of their investment.
"We believe this proposal represents a compelling value realization opportunity for your shareholders and the quickest and most secure way to see such value, particularly given the several challenges Miva faces in the near term, including: risk and cost associated with the new technology platform, a deteriorating cash position, continued deterioration of the Media EU business and continued decline in revenue and profitability.
"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."
Miva was founded after acquired and merged with several businesses including Espotting, Miva Corporation, B&B Advertising, MVCool and Comet Systems.
The group owns and operates several consumer sites through its Miva Direct division, including and , and runs a third-party contextual Pay-Per-Click ad network, through its Miva Media division.
It has offices in Europe, including the UK, Germany, France, Italy and Spain, and in the US.
said it had been developing advanced monetization technologies and believes a merger with Miva would allow it to accelerate the distribution of these new technologies into the market.
The video search engine is keen to deliver a draft merger agreement to Miva and begin discussions immediately.