Twitter has had talks to buy magazine-style app, Flipboard in an all-stock deal that values the company at $1 billion. The speculations around this acquisition have been going on since the beginning of this year, and the discussions that were being pushed by Twitter CFO Anthony Noto seem to be coming to a conclusion.
The social network’s motives behind this acquisition haven’t been made public yet, however if the and when the deal goes through in a twist of events the company will acquire the product team headed by Flipboard Co-founder and CEO Mike McCue. Mike had previously been a Twitter board member until he stepped down in May 2012, because he felt Twitter’s mobile strategy might threaten Flipboard’s position as a news reader. Moreover, beyond the possible competition, he also foresaw Twitter acquiring his company.
In its latest investment round, the feed reader app was valued at $800 million with $50 million in revenue. Also, it acquired its rival Zite from CNN in March 2014, which is known for its news personalisation. Flipboard later integrated Zite’s technology into its own app.
Twitter is not the only one gunning after publishing platforms. LinkedIn had acquired Pulse in April 2013, and just recently, social networking site. Facebook also expanded its footprints in the content space with its new ‘Instant Articles’ program to quickly deliver news articles on the site.Category Business