Flipboard Acquires Competitor Zite from CNN for $60 Million

FlipboardFlipboard announced Wednesday morning that it is acquiring Zite, a competing news-recommendation and content-sharing app currently owned by CNN, and will use that acquisition to create a broad advertising and content partnership with the news giant. The two companies didn’t release the details of the acquisitions, but according to a report CNN Money the deal is worth $60 million. CNN originally acquired Zite in 2011 for $20 million. The two companies said that the Zite team of about 20 people in San Francisco will move over to join Flipboard in Palo Alto, except for founder Mark Johnson, who wrote on LinkedIn that he is leaving to pursue other opportunities. In a prepared statement released after the deal was announced, CNN Digital general manager KC Estenson said that the media company hoped to expand its mobile audience by partnering with Flipboard.

Read the full story at Giga OM.

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