Klout Acquired By Lithium Technologies For $200 Million [Report]


Klout Acquired by Lithium Technologies

A new report suggests that Lithium Technologies has purchased social ranking platform Klout for upwards of $200 million.

The report, featured in Fortune, cites two anonymous sources who confirmed the deal.

A spokesman for Lithium failed to acknowledge the deal, saying that Lithium will hold a press conference in San Francisco on Thursday morning.

Last month we issued another report that suggested a $100 million buyout of Klout was in the works.

At this time we don’t know if the Klout acquisition will result in the platforms technology being implemented with Lithium’s own software. That software is in direct competition with Salesforce.com, Jive Software, and other competitors.

The $200 million acquisition is a big score for Lithium Technologies, the company in September announced a $50 million funding round.

Since debuting in 2008 the Klout algorithm for social media ranking has been questioned by users and social media experts. Despite concerns over the platforms ranking procedures, the company announced a round of funding in January 2012. Investors in its original round of funding included Kleiner, Perkins, Caufield, & Byers, Greycroft Partners, Paige Craig, FF Asset Management, Howard Lindzon, and Thomas McInerney.

In order to capitalize on its successes the team at Klout eventually added a “perks” program into the mix. That program rewards users with more social influence, although many offers ran out before many users could claim them.

 


James Kosur

James Kosur has worked in the new media space for the last 10 years, helping many publications build their audiences to millions of monthly readers. He currently serves as the Director of Business Development at Business2Community.com and the CEO of Aven Enterprises LLC.

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