Twitter Reportedly in Talks to Buy FlipboardThe social network is rumored to be exploring an all-stock deal that would value the social news reader at more than $1 billion.
ByNina Zipkin•
Twitter may be mulling a purchase ofFlipboard, a social aggregation app that lets users organize articles about the subjects that interest them into their own "digital magazine,"Re/code reports.The possible acquisition would be an all-stock deal that would value Flipboard at more than $1 billion.
Flipboard was co-founded in 2010 by Mike McCue and Evan Doll. Prior to Flipboard, software engineer Doll worked on the iPhone at Apple and Silicon Valley fixture McCue sold his voice recognition tech startup TellMe Networks to Microsoft for more than $800 million and was a General Manager there.
Related:The Inside Story of Flipboard, the App That Makes Digital Content Look Magazine Glossy
While the discussions are reportedly at a standstill for now, there is a question of what both company's would stand to gain from the rumored deal.
Twitter CEO Dick Costolo has beenscrutinizedof late thanks to aseries of staff shakeups, a lower than estimatedfirst quarter revenuereport (and subsequent drop in stock)slow growthand thecompany's handling of cyberbullying.
Related:Here's How Much Twitter's Co-Founders Lost in the Earnings 'Leak'
As of last year, Flipboard had about 100 million active users, but like Twitter, has also seen a slowing of user growth. However, In January, the company rolled out a new ad feature called Promoted Items, so a Twitter partnership could help them bolster their branded content.
CEO McCue sat on Twitter's board of directors, buthe left that rolein 2012. The Flipboard buy could be a way for Twitter to bring him back into the fold in a leadership position, perhaps as a possible successor to Costolo, while simultaneously shoring up the company's product design -- or potentially utilizing Flipboard's publisher relationships to help power an initiative like Facebook's recently launched Instant Articles.
Twitter and Flipboard did not immediately respond to a request for comment.
Related:Want to Know What's Happening in Your Industry? This Addictive Magazine App Can Help.
