March 5 News reader company Flipboard said on
Wednesday it has bought rival app Zite from CNN and struck a
content deal with the cable news network.
The deal is valued at $60 million, according to the CNN
Money website, but executives would not confirm the number in a
conference call with reporters on Wednesday.
Time Warner Inc's CNN bought Zite, a news reader
application that aggregates content for tablets like Apple Inc's
iPad in 2011, for around $20 million, according to
reports at the time.
Flipboard co-founder and Chief Executive Officer Mike McCue
said 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
As part of the deal, Flipboard will incorporate CNN content
into its news reader and team up with the network to sell
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
Flipboard is free. The Palo Alto, California-based company
makes money mainly from selling advertising.
It is one of the more popular news readers. Flipboard,
however, faces competition from mobile news readers such as
Circa and most recently Facebook Inc, which launched its
own magazine-like app called Paper.