Google Inc (GOOGL) And Yahoo! Inc. Join Twitter In The Race To Acquire Flipboard
It is emerging that Google Inc (NASDAQ:GOOGL) and Yahoo! Inc. (NASDAQ:YHOO) have reached out to Flipboard for a potential buyout deal. Twitter Inc (NYSE:TWTR) is also interested in the news aggregator, especially as it struggles to reinvigorate its slowing user acquisition.
Internet companies are trying to figure out how to serve news content to their users on the go. Flipboard could perfectly fit into the news content agenda of the likes of Twitter, Google and Yahoo. Others, like Facebook Inc (NASDAQ:FB) and Snapchat, have taken a different approach to elevate their news profiles.
On its part, Facebook inked a news content partnership with publishers to post articles directly on its app under what it calls ‘Instant Article.’ Snapchat also has its version of Instant Article where publishers take control of the content they share on the platform.
Google fails to discuss price
The talks between Google Inc (NASDAQ:GOOGL) and Flipboard initially focused only on how to integrate products into the app, with price discussion being put aside. The same case applied to Yahoo’s discussion with Flipboard. However, the case with Twitter was a bit different as the talks went on to involve the price of the property.
$1 billion valuation for Flipboard
The buyout talks between Twitter and Flipboard reportedly value the news curator at $1 billion.
Twitter CFO backs Flipboard buyout
It is said that Twitter’s CFO, Anthony Noto, is advocating for the company to acquire Flipboard. Even before he joined Twitter from Goldman Sachs Group Inc (NYSE:GS), Noto used to urge Twitter to go for Flipboard, as he believed the asset would bolster Twitter’s news serving.
Twitter and Flipboard are already collaborating, with the former serving promoted tweets on Flipboard to enhance exposure. Flipboard had 65 million monthly active users in May, up from than 50 million it had in February.
Millions of people come to Twitter to consume news thanks to its real-time nature, but the growing number of tweets means that users are getting overwhelmed when searching for relevant updates. That explains why tapping Flipboard makes plenty of sense for Twitter, as far as enhancing the experience of news consumers goes.
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