The South by Southwest (SXSW) conference will be in full swing this week with this years event taking place in Austin, Texas. This year, the event will be overshadowed by a rumour which seems to indicate that the Cable News Network which is better known as CNN is looking to buy the social media-centric site Mashable.
Based upon the reports, the Time Warner company is currently in advanced discussions regarding the buyout and it’s believed that the deal will be worth $200 million US. The news was first broken by Felix Salmon from Reuters with his sources stating that a deal was imminent with a possible announcement coming as early as tomorrow. This news was then corroborated by the New York Times, but other sources are now saying that the Tuesday announcement may be premature.
Like all of these sorts of deals, the two players, both CNN and Mashable declined to comment on the story. From CNN’s perspective, the acquisition of Mashable does seem to make sense. Although they may have made a name for themselves as the number one cable news source, the reality is that television audiences have been declining with more users turning towards mobile media and Internet based news outlets. With Mashable having a large audience and brand recognition, CNN would have yet another established source through which to expand their presence.