Flipboard is currently one of the most popular online news reading apps and the company has been gaining massive traction over the past few years. In order to facilitate further growth the company has bought out one of their competitors, Zite.
Zite was formerly owned by CNN, who had paid $25 million for it back in 2011. CNN Money proclaimed that the buyout figure from Flipboard was to be in the neighbourhood of $60 million.
Flipboard founder Mike McCue said that the partnership with CNN will include all of CNN Digital’s content. We will also see the launch of heavily customized magazines created by a number of CNN personalities — including Fareed Zakaria, Jake Tapper and John King of CNN News. Those magazines are poised to go live later today.
Flipboard is also inking a new premium advertising partnership, “the kind of advertising you see in print magazines,” CNN’s head of digital KC Estenson said. CNN and Flipboard will be jointly selling ads for the CNN content. “We’ve been developing a healthy relationship.”
In the wake of Facebook launching their news reading app “Paper“, Flipboard has been ramping up its effort with publishing partners and advertisers. Flipboard has secured a new deal with Condé Nast to give titles such as Bon Appétit, Details, Glamour, Golf Digest, Vanity Fair and Vogue. Flipboard also has a great relationship with The New York Times, The Telegraph, Forbes, Esquire, Fast Company, Oprah, and Lonely Planet.
CNN is a victim of big media trying to run a news app. They simply could not innovate internally to make Zite a compelling enough service to give its serious rivals a run for their money. Flipboard puts the executioners axe to another competitor and is able to now harvest their original content to integrate it into their own service.