Vancouver based Zite Acquired By CNN: Why are Canadian Media Companies Not In The Game?
So TechVibes is reporting that the Vancouver based iPad personal news application, Zite, is being bought by CNN for a reported $20-25 million.
At the time of this post there was no official confirmation on the Zite blog, but if true, it is great news for a Canadian start-up that was first germinated at the University of British Columbia.
According to TechVibes “Once official this acquisition story will be a huge feather in Vancouver’s and Canada’s startup cap. Zite evolved from technology developed at UBC and the company has been a poster boy for government programs with grants from Canada’s National Research Council and PRECARN.”
So the question is how does an American media company scoop in and pick up a promising Canadian startup?
The answer: Canadian media companies are asleep at the switch.
In fact, where are all the Canadian media companies? Where is Shaw? Where is Rogers? Where is Bell? Where is Telus?
Oh right there too busy lobbying the CRTC to protect antiquated market share, rather than throwing there hat in the ring and adding next generation news value to their properties.
Meanwhile, for those who don’t know Bell Globe Media owns a number of news outlets including CTV and the Globe and Mail. Shaw Media owns Global News. Rogers owns City TV and host of other news outlets and publications.
The point is not to single out Shaw or Bell or Rogers but rather to highlight how risk averse all Canadian Media companies are – coddled by governments and regulators, propped up by taxpayers our media landscape is one of stay the course.
Simply put, there is a lot of innovation the start-up media landscape in Canada, the media companies in this country don’t really seem to carry.
The consequence: something that was nurtured and developed here in Canada is ignored by the very companies who may well need it for there future survival.
- CNN snaps up Vancouver’s Zite (business.financialpost.com)