Twitter Plans To Acquire Flipboard
Twitter has set a rather colossal goal for shopping. The online social networking service is reportedly trying to acquire the social media aggregation app Flipboard. According to Re/code, the all-stock deal will make the latter worth $1 billion.
Both the companies, with Twitter’s chief financial officer Anthony Noto leading his team, have been in talks since the beginning of 2015. However, the talks are currently stalled, the report adds.
Flipboard has not been able to maintain its massive early success. Although $800m valuation company has attracted more than $160m in funding and has $50m in revenue, it’s growth has slowed down for certain reasons.
It’s been a year when Flipboard publicized that it had 100 million “activated” users. The reason behind the company’s delay in updating the figure somehow indicates that numbers are not enabling the company to boast of.
One possible factor, which could have potentially impeded its growth, can be its app’s disappearance from Samsung devices. Before the deal ended recently, the Samsung device owners would automatically become Fliboard users as the app used to come pre-install in Samsung handsets.
The users of Flipboard’s app get aggregated and shared links and data in an attractive magazine-style format.
Twitter is also struggling now-a-days. Recent reports suggest that the company’s monthly active user base is worrying the top heads of the social network.
If the deal is struck successfully, Twitter, using Flipboard as additional leverage, will try to uplift its business gradually. One of the initial strategies can be to incorporate advertising technology to Flipboard’s reader app for generation of real revenue, and presenting it as repository of shared content.