Flipboard Acquires ZITE, Partners with CNN
Flipboard announced earlier this month that it has acquired Zite, a popular news reader app for iOS and Android (and a competitor), from CNN.
According to various sources, the deal was an all-stock transaction. Zite was purchased in 2011 by CNN for upwards of $20 million. All 14 employees, except CEO Mark Johnson, will be joining CNN.
“More than a leader in mobile reading, Flipboard has created an incredibly immersive and valuable advertising experience,” said KC Estenson, SVP & GM of CNN Digital. “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.”
Flipboard and CNN have also partnered to deliver the latter's reporting, video and photography to Flipboard, creating three custom magazines on topics including politics, sports and popular culture.