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News Corp to buy Blinkx

Media giant News Corp. is apparently talking to video search company Blinkx about an acquisition, according to a news report. With $2 billion allotted for Internet acquisitions, News Corp. plans to challenge Yahoo, MSN and others with a digital network of its own, the company's CEO Rupert Murdoch indicated last week during an earnings announcement.

To that end, News Corp., which owns Fox News and Fox Sports, recently bought the parent company of social networking site and sports Web site Scout Media Inc. for a combined $700 million.

Blinkx, a pioneering video search engine that arguably outdoes offerings from Google and Yahoo, could be the glue that ties together News Corp.'s online network of the future, which will likely be tailored to a broadband, video-rich Internet. Yahoo's already headed that direction, with a content-production team in Hollywood and video search tools in the making.

If the Blinkx acquisition happens, it will raise an interesting question. How unbiased will a corporate-owned search tool be in delivering the video content of third parties over its own?

News Corp. and Blinkx didn't immediately respond to requests for comment.