Rumours of Flipboard’s impending acquisition started making the rounds a few weeks ago, bolstered by other reports that the news platform couldn’t gain the necessary funds from private equity and investors.
While this all happened, Flipboard secured investors for a very quiet Series D funding round. The company raised $50 million (£31 million) at $2.2 (£1.4) per share, with a valuation of $800 million. That means in two years, Flipboard has not increased in value.
Flipboard has been struggling to keep users active on the news platform. With over 300 million downloads, Flipboard has only 70 million active monthly users to show for it. That is still a 75 per cent increase on February, thanks to the new web service.
The company was in talks for a full stock acquisition with Twitter, with a value of $1 billion (opens in new tab) (£640 million). Yahoo and Google were apparently also in the running (opens in new tab), both needing some extra news tools to compete with Apple News.
This latest funding round shows Flipboard wants another year or two to try and compete, before potentially wrapping it up. Even though companies have kept private for longer with funding rounds, most sell before Series E comes around.