Updated: Report: Digital newsstand Zinio is up for sale

Update, 6/26/2012, 8:10 PM: Zinio responded to my questions with the following statement:

Committed to growing the company, we have retained Montgomery & Co to facilitate capital raising strategies and discussions. While the company has been engaged in similar discussions in the past, Zinio has never had a stronger vision, strategy and roadmap to engage the right set of potential partners.

The 12-year-old digital magazine newsstand Zinio is putting itself up for sale, according to a Fortune.com report.
Fortune says:

The San Francisco-based company has hired investment bank Montgomery & Co. to manage the process, with one source saying that the company is seeking between $50 million and $100 million. No idea yet if there is buy-side interest at that price.

If the report is true, it suggests that Zinio has had difficulty competing with digital newsstands from Apple (s AAPL), Amazon (s AMZN) and Barnes & Noble (s BKS) — although last fall Zinio CEO Richard Maggiotto claimed that Apple Newsstand hadn’t affected business, telling paidContent’s Robert Andrews that “if you measure by revenue, [Apple Newsstand] hasn’t had any impact.” Zinio is privately held and doesn’t report revenues.
According to AppData, Zinio is the #14 top grossing iPad app in the U.S. and the #2 top grossing iPad app in the news genre (after the New York Times’ iPad app). Its apps are available on most platforms, including Kindle Fire, BlackBerry (s RIM) and others. The company raised a $20 million Series B funding round in November 2011.