CNN has acquired a tech company that developed a news app for the iPad, Multichannel News reports. Terms of the deal to acquire Zite were not disclosed.
It had been reported recently that CNN was looking to purchase the firm for between $20 million and $25 million.
The company will become a wholly owned subsidiary of CNN, the story reports.
The Zite app is a piece of free software for Apple’s iPad that aggregates news content from a range of Internet sources, customized for users based on their preferences.
The story reports: “In March 2011, Zite received a cease-and-desist letter from a group of media companies — including Time Warner Inc. (parent of CNN), The Washington Post, AP, Dow Jones and Getty Images — asserting that the startup was "misappropriating" their intellectual property. Zite ‘responded immediately’ to the cease-and-desist notification, according to a CNN spokeswoman, and ‘hasn’t heard any concerns from those publishers’ since. Zite changed the app to link to news stories from those companies rather than presenting them in ‘reading mode’ directly within the app.”