British software company Autonomy Corp. Ltd. on Wednesday said it was exercising an option to buy consumer video search firm Blinkx Inc., which it will relaunch.

Autonomy, whose technology is used by video search engine Blinkx, said it would spin out its consumer division, which is responsible for developing and applying its technology, as a new company to be called Blinkx PLC.

The new company would focus exclusively on the consumer market while Autonomy would cater to the enterprise market.

In October, Blinkx Inc. signed a deal with Microsoft Corp. to incorporate its search functions into the software giant's MSN and Live.com services.

Blinkx Inc. uses Autonomy's technology to index video from CNN, BBC and YouTube, among other broadcast and internet services. The videos can then be searched on Blinkx's website or others that license the underlying technology.

The privately held company employs speech recognition capabilities to extract search data, which it has used to index some six million hours of online video, audio and television programming.

Shares of Blinkx PLC are expected to start trading on the London Stock Exchange's AIM market in May. Autonomy would own about 10 per cent of the new firm's common shares.

CastTV wins $3.1 million in funding

In an unrelated development, San Francisco, Calif.-based web video search startup Cast TV Inc. said it has received $3.1 million US in first-round funding from venture capital firm Draper Fisher Jurvetson.

CastTV on Tuesday said it "has signed a two-year deal with a major media corporation to provide online video crawling and indexing technology for the company's online video search offering."

Netscape Inc. founder Marc Andreessen is a member of CastTV's board of directors.

Draper Fisher Jurvetson has previously backed technology startups that include Hotmail, now owned by Microsoft, and Voice over Internet Protocol company Skype, now owned by eBay Inc.