Google and Yahoo might both be in talks with Flipboard, the news content aggregator, following news Twitter was planning to pay $1 billion (£630 million) in an all-stock deal.
Flipboard gained $160 million (£104 million) in funding last year, with a valuation of $800 million (£522 million). Even though it is not the same huge numbers Snapchat, Uber and WhatsApp are pulling in, the startup has a talented team of developers.
Content engagement is also becoming more popular, with Facebook launching ‘Instant Articles’ earlier this week. Instant Articles allows news to be displayed on the News Feed, instead of only being available through a link to a website.
Flipboard has always offered content in its own UI, instead of linking news articles to websites. Hundreds of news organisations have got on board with Flipboard, more than Facebook currently has on board with Instant Articles.
Google is always looking for new services to acquire. Given the growing trend by governments to try and shut down Google News, Flipboard might be a new way to offer news aggregation without having to pay for the right to host the content.
Yahoo is on a spending spree, acquiring Tumblr for $1.1 billion (£720 million) and other web and ad services. It wants to be in charge of the biggest social services, and Flipboard would give them a strong hold of news aggregation and 100 million users.
Google and Yahoo can outbid Twitter, considering both of the search companies have billions saved up and strong revenue and profit. Twitter, on the other hand, lacks the necessary funds to offer an all-cash deal, instead offering some of its rather poor rated stock.