Twitter Inc (NYSE:TWTR) is reportedly in talks to acquire Flipboard.
According to insider sources, Twitter and Flipboard have been in talks about the acquisition since the beginning of this year. However, it seems that the two have hit a roadblock that is keeping talks from moving forward. The deal would value Flipboard at more than $1 billion, reports Recode.
One reason that Twitter may be interested in acquiring Flipboard is that it could help it increase its audience. It would also give the company access to Mike McCue, who manages Flipbaord’s product team. McCue used to be a member of TWTR’s board and could be a potential candidate to take over as CEO of the company when the time comes, Recode notes.
It’s also possible that Twitter is interested in Flipboard for its ad business. The company doesn’t report its ad revenue, but it could help monetize content that is linked to from TWTR, but isn’t read on it, reports Business Insider.
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