Posted 05/26/2015 at 9:47 AM
Posted 2 years ago
A recent move by a social media giant that would raise its value in a promising way, has encountered a bit of a slowdown.
It was recently revealed that Twitter was in talks to acquire the social news magazine company known as Flipboard.
The deal, composed entirely of stocks, would be worth $1 billion.
Talks have been in motion from the beginning of the year thanks in part to the efforts of CFO Anthony Noto, representing the social media company’s willingness to expand their capabilities of innovation.
Flipboard, regarded as one of the better companies that investors have helped to grow in the past with investments totaling $160 million, is entering these negotiations being valued at $800 million.
A prime selling point? Twitter’s growing ability to sell ads in an effective manner to a base that is selective about the kinds of ads they’ll take a look at.
The acquisition of Flipboard would not only give them a new way to bring those advertisements to their subscribers, but it would also help Flipboard with their own advertising outreach program.
Another factor is the involvement of Mike McCue of Flipboard who is a well-regarded investor from the Silicon Valley scene and a former board member with Twitter; many see him as someone who can help the two parties merge successfully.