NEW YORK (TheStreet) -- Twitter (TWTR) is considering paying $1 billion in stock to buy privately held social network aggregator Flipboard, according to media reports. The talks, however, seem to have stalled over price.
This kind of deal would make sense for Twitter for a couple of reasons.
There are two things that are different (potentially) about Flipboard -- and the CEO of 24/7 social media agency Laundry Service Jason Stein tweeted this out this morning: (1) Flipboard is more visually appealing now and (2) potentially Flipboard has a better algorithm to surface news that's of interest to me.
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The first point is pretty undeniable to anyone using both services. The second is really impossible to know from the outside but is likely.
If you agree with those two points, it would seem to be additive to Twitter to have Flipboard or essentially merge the Flipboard experience into Twitter.
So, the next question is the price.
Whether $1 billion is too much for what Twitter will get back from Flipboard could be debated. But not up for debate is that the deal being discussed is an all-stock deal, per Re/Code's Kara Swisher. This essentially means it's a home run for Twitter and its investors.