Twitter has apparently been engaged in talks to acquire Flipboard in an all-stock deal that values the company at $1 billion. The talks have been taking place since the beginning of the year but seem to have currently stalled.
According to Re/Code, the discussions have been pushed by Twitter CFO Anthony Noto. The move is in line with the social network trying to innovate its product owing to investor pressure for not growing ad revenues.
While no details of why exactly Twitter is looking to acquire Flipboard has leaked, but there are immense possibilities. Twitter will gain an experienced product team which is currently headed by Mike McCue.
McCue has already served on the board of Twitter but stepped down because of competition between Flipboard. He is also the perfect candidate to take over the CEO position from Dick Costolo who has come under fire from investors.
For Flipboard, the acquisition could solve growth issues. Some people say that the company’s user base has leveled off recently, in part because Samsung phones don’t come preinstalled with it anymore.
Further, at a time when Facebook is making massive headway in the content space with innovations such as Instant Articles, Twitter too is looking at ways to better engage users and in turn attract advertiser dollars.