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News reader company Flipboard has bought rival app Zite from CNN at $60 million.
As part of the deal, Flipboard will incorporate CNN content into its news reader and team up with the network to sell advertising.
The Flipboard app enables people to create and curate their own digital magazines or follow other people’s magazines by areas of interest, incorporating a wide range of content, including Twitter and Facebook posts as well as traditional news articles.
Flipboard is free as the California-based company makes money mainly from selling advertising.
It is one of the more popular news readers with more than 100 million users. Flipboard, however, faces competition from mobile news readers such as Circa and most recently Facebook Inc, which recently launched its own magazine-like app called Paper.
Time Warner Inc’s CNN bought Zite, a news reader application that aggregates content for tablets like AppleInc’s iPad in 2011, for around $20 million.