Updated: Flipboard eats Zite for $60 million

Flipboard announced Wednesday morning that it is acquiring Zite, a competing news-recommendation and content-sharing app currently owned by CNN, and will use that acquisition to create a broad advertising and content partnership with the news giant. The two companies didn’t release the details of the acquisitions, but according to a report CNN Money the deal is worth $60 million.

CNN originally acquired Zite in 2011 for $20 million. The two companies said that the Zite team of about 20 people in San Francisco will move over to join Flipboard in Palo Alto, except for founder Mark Johnson, who wrote on LinkedIn that he is leaving to pursue other opportunities.

Mathew Ingram | Gigaom

CEO Mark Johnson sounds like he might have

UPDATE: 

No cash was exchanged in the deal, according to the person who asked not to be named because the talks were private. Instead, the two companies agreed to advertising and content arrangements in addition to the equity stake, this person said.

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Earlier reports pegged the deal with Flipboard at $60 million. Matt Dornic, a spokesman for CNN, said the reported numbers are incorrect and declined to comment on CNN’s stake in Flipboard. Marci McCue, a spokeswoman for Flipboard, declined to comment.

Edmund Lee | Bloomberg