Flipboard gobbles up news reader app Zite for $60mn

Flipboard has bought up news reader app Zite, taking the firm off the hands of CNN for a reported $60 million (£36 million).

Or at least, the deal could reach a value of $60 million over time – taking into account future money from advertising. That’s what a source with knowledge of the acquisition told CNN Money.

As part of the deal, CNN will be pushing out custom magazines for some of its shows on Flipboard. These will include Fareed Zakaria’s GPS Daily, The Lead with Jake Tapper, and John King’s Go Inside Politics. Additional CNN mags will follow down the line, too.

Given that CNN only paid around $20 million (£12 million) to buy up Zite a few years back, it sounds like the company has secured a pretty decent outcome here.

Flipboard, of course, is heading down that well-travelled tech industry road which sees companies swallow their rivals. The Zite app will be shuttered, and Flipboard is absorbing the Zite team for its personalisation technology and recommendation engine.

Mike McCue, CEO of Flipboard, commented: “Today marks an important milestone for Flipboard and its readers. By bringing the Zite team and technology to Flipboard, we can deliver an even more personalised experience to every Flipboard reader. By partnering with CNN we can provide the world-class news our audience expects and expand our global coverage in a significant way.”

“Together we will continue to pioneer how people read and share the content they care about and give Flipboard readers even more of what they want, all in one place.”

Flipboard is, of course, looking to equip itself to battle the new Facebook Paper app which has come stomping into its territory recently.