Flipboard Acquires Zite From CNN, Partnership Announced.
Flipboard announced this morning that it will acquire a competing news recommendation and content share app by the name of Zite. The company is currently owned by CNN and will use said acquisition to increase advertising and content partnership with the news. Both companies have as of yet to release any detailed information regarding this deal, but according to CNN Money, the deal was around $60 million worth.
Zite was originally acquired back in 2011 by CNN for an amount of $20 million. Zites team have said to make up of 20 people in San Francisco, and shall be joining Flipboard in their Palo Alto location. Mark Johnson Founder of Zite, shall be the only exception with his decision to leave and pursue other opportunities.
CNN Digital general manager KC Estenson released a statement after the deal had been stuck, that mentioned that the media company planned to expand its mobile audience with its new partnership to Flipboard:
“By tapping their expertise, we will create new revenue opportunities and expand CNN’s already massive mobile audience. With this deal CNN is invested in the long term success of Flipboard.”
Partnerships And Features.
Mike McCue the founder of Flipboard, has commented on CNN partnership and it will include all content from CNN Digital, with channels for the various topics related to the media company, along with a customized magazine that will be created various CNN members, such as Jake Tapper, Fareed Zakaria, and John King of CNN News. These magazines shall be launched live during sometime on Wednesday.
McCue has commented on Zite technology being integrated as part of Flipboard, allowing the company to increase even further then before. The companies have not commented on how Zite users have or had overlapped between the two services, but McCue has stated before that Flipboard has over 100 million users and is increase by every 250,000 new users every day.
The company has been reported in being valued by over $800 million after last years Series C round raising them over $160 million in financing.