Venture capital funding into the news reading app space has declined markedly YoY while M&A interest in the news reading app space is heating up as large technology players look to provide content streams uniquely tailored to the mobile experience and/or to acquire talented teams familiar with mobile.
In just the last month, there has been Yahoo’s $30M purchase of Summly, LinkedIn’s $90M purchase of Pulse, and finally Google’s recent $30M+ acquisition of Wavii, a similar machine learning news app to Summly. Prior to Summly’s March acquisition, the last notable M&A exits in the news reading space were CNN’s purchase of Zite in 2011 and Facebook’s acquisition of FriendFeed in 2009.
But with exit activity in the space gaining speed, which news reader startups may be next in line for an exit? Using CB Insights company and valuation multiple data, is there is a billion dollar exit in the lot and who might it be?
Based on an analysis of the acquisition valuation multiples of acquired news readers, the average price to user (P/U) multiple paid was…