CNN acquired Zite in 2011 for a little less than $20 million and today sold the service to Flipboard for a rumored $60 million.
I don’t want this to be the type of acquisition announcement that glosses over all bad news, and there is some: the Zite app is not going to be around forever. Our goal is to get the things that are great about Zite into Flipboard before shutting it down. We will also build a way for you to transition your data from Zite into Flipboard. Until then (for six months at a minimum), we will continue supporting Zite. Our users mean the world to us; after all, what Flipboard saw in us, you saw first. We hope you come with us and help us shape the future of news.
The deal includes a partnership to sell ads. Flipboard’s business purpose is to add value to publishers by selling brand ads at premium prices on tablets. As part of the deal, both CNN and Flipboard will sell ads against CNN’s content going forward.
Beyond the acquisition, Flipboard and CNN have partnered to deliver CNN’s reporting, video and photography to the Flipboard audience around the world. Flipboard readers can now find CNN’s global news and information content in the News, Entertainment, Technology and Business sections on Flipboard.
See Also: Bloomberg Interview with Flipboard CEO, Mike McCue (July 2013)