Cnn Enters Tablet Field By Buying Zite
CNN has paid a reported $20-25 million to acquire the iPad application Zite, which the developer describes as a "personalized magazine" that tracks a reader's interests and collects news articles pertaining to them into an elegant layout for the Apple tablet. Such iPad apps have aggravated some content providers, who have charged the developers, including Zite's, with copyright infringement. In March, the Washington Post , AP, Gannett, Getty Images, Time , Dow Jones and other media organizations sent Zite a cease-and-desist letter calling the app "plainly unlawful." Just how CNN intends to use the app and how it intends to handle threatened lawsuits against it was not immediately disclosed. Announcing the deal, CNN said that Zite will become a subsidiary and operate as a standalone unit. Zite CEO Mark Johnson said that Zite will be working with CNN "to create a world-class news discovery platform."