An all-stock deal would increase Flipboard’s value to $1 billion.
Flipboard, the popular social news aggregator, is rumored to be in talks with Twitter for an all-stock deal that would value the company at around $1 billion, sources tell Re/code. Twitter’s Chief Financial Officer, Anthony Noto, is reportedly pushing the talks, which started earlier this year.
While the deal is interesting, considering the technology and talent that Twitter may acquire, sources added that the discussions aren’t going so well. Sources familiar with the talks between the two companies said that the talks are in a deadlock. Both companies have yet to comment on the report.
It is easy to see why Twitter would be interested in Flipboard. The app, which partners with media publications to display content, also curates an excellent selection of stories. That means Twitter can benefit from Flipboard’s expertise, which is curation. Flipboard also acquired Zite, a rival news aggregator, last year.
Additionally, Twitter can also benefit from acquiring not just the technology but also the talent. Flipboard’s founder, Mike McCue, is a famous Silicon Valley entrepreneur who was able to launch successful startups. He was also a member of Twitter’s board. McCue’s experience in product creation will be an asset to Twitter.
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