News reader company Flipboard buys rival Zite from CNN

Wed Mar 5, 2014 10:28pm IST

Related Topics

Stocks

   

(Reuters) - News reader company Flipboard said on Wednesday it has bought rival app Zite from CNN and struck a content partnership with the cable news network.

The deal is valued at $60 million, according to the CNN Money website. A CNN spokesman called the valuation "inaccurate" but declined to give details.

Time Warner Inc's (TWX.N) CNN bought Zite, a news reader application that aggregates content for tablets like Apple Inc's (AAPL.O) iPad in 2011, for around $20 million, according to reports at the time.

Flipboard co-founder and Chief Executive Officer Mike McCue said during a conference call with reporters that Zite's technology and recommendation engine, which helps readers discover content, were what drew Flipboard to the deal.

"We are going to integrate that technology into Flipboard," McCue said, adding that Zite will no longer be a stand-alone product.

As part of the deal, Flipboard will incorporate CNN content into its news reader and team up with the network to sell advertising.

The Flipboard app enables people to create and curate their own digital magazines or follow other people's magazines by areas of interest, incorporating a wide range of content, including Twitter and Facebook posts as well as traditional news articles.

Flipboard is free. The Palo Alto, California-based company makes money mainly from selling advertising.

It is one of the more popular news readers with more than 100 million users. Flipboard, however, faces competition from mobile news readers such as Circa and most recently Facebook Inc (FB.O), which launched its own magazine-like app called Paper.

(Reporting by Jennifer Saba in New York; Editing by Jonathan Oatis)

FILED UNDER:
  • Most Popular
  • Most Shared

GOOGLE

Tech Showcase

Advanced Software

Advanced Software

Computer spying malware uncovered with 'stealth' features - Symantec.  Full Article 

Apple Settlement

Apple Settlement

Apple $450 mln e-book settlement gets final court approval.  Full Article 

Samsung Complain

Samsung Complain

Samsung files ITC complaint to block Nvidia chips from U.S. - Bloomberg.  Full Article 

Jeep SUVs

Jeep SUVs

Chrysler says it will speed up recall repairs for Jeep SUVs.  Full Article 

Internet Rules

Internet Rules

Any new U.S. Internet rules must withstand lawsuits - FCC chief.  Full Article 

Amazon's Plan

Amazon's Plan

Amazon plans ad-supported video streaming service - NY post.  Full Article 

Cellphone Upgrade

Cellphone Upgrade

Mobile phones to get handy upgrade.  Video 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage