Media consumption site, Flipboard, made announcements that it has purchased one of its rivals from a competitor. Flipboard reportedly purchased the Zite App from CNN, which was one of its strong competitors in the news aggregate business. While Zite was sort of a stand alone company, they were purchased a few years ago by CNN to help bring their own online presence up to speed with their competition. CNN had feared that if they did not keep up with the technological demands of their readers, that they would ultimately fall victim to declining traffic. Despite their fears, they have remained steady with a constant visitor base, and apparently felt comfortable letting their newly acquired business go.
Flipboard Buys Zite From CNN For $60 Million
This deal does mean that the two companies will be merging into one, and as a result the Zite App will soon disappear. The reason that Flipboard supposedly purchased Zite was not to eliminate the competition in their arena, but so that they could integrate the Zite Apps recommendation technology into their own Flipboard App. Another key benefit to Flipboard that will come from this deal is that CNN and Flipboard are making an agreement to bundle together their online advertising. This will increase the unique viewer base of their advertising power, and allow them to collectively broker bigger deals from companies who wish to advertise on the two resources.
The purpose of online news aggregates like Flipboard and Zite is to compile news feeds from various sources, and deliver them in a meaningful manner to their users via an app or a website. After registering to use the aggregate software (which is typically free of charge), the user can typically customer tailor their news preferences to help ensure that future visits will deliver more meaningful information to them. This typically prevents a user from having to dig through pages of stories in order to find the type of articles that they would find most interesting. Other resources such as Google News already do something similar to this with their Personalized Editions, but they fail to do so in a visual style like Flipboard is known for.
Featured image taken from screenshot of Flipboard webpage.
Flipboard Buys Zite From CNN For $60 Million.