Zite for iPad Screenshot via iTunes

CNN has bought Zite, maker of a popular news reader app for Apple’s iPad that gives readers personalized web content presented with a magazine feel.

CNN announced the acquisition on its PressRoom blog after a week of rumors about the deal. The deal was first reported by TechVibes’ Rob Lewis after the GROW conference in Vancouver, Canada, where Zite is based.

No announcement was made about the size of the deal, but Lewis initially reported that the deal would be for about $20 million to $25 million.

Zite will remain an autonomous unit inside CNN, according to the announcement.

Mark Johnson, who took over the helm of Zite and refocused the company’s product after stints at Powerset, Bing and Kosmix, will remain CEO.

“Zite is thrilled about combining forces with CNN to create a world-class news-discovery platform,” Johnson said in a news release. “In CNN, we have found a partner who shares our vision and passion. Being part of the CNN family gives us the capital to grow Zite’s business and continue to innovate in the space.”

Zite’s technology specializes in finding content tailored to a reader’s interest that the reader might have missed otherwise. Most Zite users use it not as a daily morning read, but as a more leisurely app for finding interesting reads that aren’t necessarily breaking news.

Zite’s debut met with resistance from publishers, including Wired.com’s parent company Condé Nast, over how much of their content was shown in the app. Those issues were largely worked out, according to Johnson.

But clearly CNN Worldwide sees deep potential in a more personalized web — and definitely in a more personalized experience on CNN-owned websites.

“Zite represents the next generation of content discovery and personalized publishing and CNN wants to help lead in that space,” said K.C. Estenson, general manager of CNN Digital. “We think we can advance the industry in a meaningful way that helps content creators grow their businesses while growing the distribution of a product that people already love. Zite’s technology can also be used to help CNN’s Websites and apps serve more personalized content, making our current digital services even better.”

CNN’s interest in finding the right audience for the right content isn’t just about its flagship news site. The company’s stable of publications includes its Digital Network (which includes CNN.com), NewsPulse, iReport, CNN Blogs and one full-fledged magazine, CNN Traveller.

Moreover, Sports Illustrated, Fortune, and Money magazines’ web presences all live on CNN.com (e.g., sportsillustrated.cnn.com).

CNN also syndicates content from a wide range of publications including Wired.com, Ars Technica, Mashable, Business Insider, Fast Company, Engadget, People, Entertainment Weekly, and Rolling Stone.

One could imagine then an app that uses Zite technology that features only CNN-owned and partnered content, which would allow the app to display content as it fits and with integrated advertising — with no worries about copyright infringement or negotiating with publishers.

Additional writing and reporting by Tim Carmody.