Klout may be acquired by marketing firm for $US100 million

Lithium Technologies will pay more than $US100 million, according to published reports

Klout
Klout

Apparently Klout is popular.

The website that provides social media users with a measure of their "influence" is close to being acquired by a social marketing company for $US100 million, according to published reports.

The supposed buyer, Lithium Technologies, helps major brands use social media to grow their businesses. It will acquire Klout for a mixture of cash and stock in a deal worth somewhere in the "low nine figures," according to Re/code. That would put the deal somewhere north of $100 million, a price The Wall Street Journal also reported.

Re/code, which cited unnamed sources, cautioned that the deal had been signed but not closed.

Klout and Lithium are both privately held companies based in San Francisco.

Klout users can see their relative influence on the Web ranked on a scale from zero to 100. The calculation is based on how many people their social media posts reach, the people they reach and the people that interact with them.

Klout also offers "perks" to users with particular levels of influence. At present, some users are being offered a free e-book, while others have been offered coupons for fast food, drinks and access to events. The hope is that these "influencers" will tweet about the products and provide the companies exposure.

It may be working. Klout's website lists scores of tweets related to the promotions, and the company says it has delivered 1.25 million "perks."

Klout has just revamped its website to suggest content that it thinks will be attractive to people's followers. It's intended to help users build their brand and connect with more users, and in turn lead to a closer relationship between Klout and its influential users.

Klout claims to have scored half a billion profiles.

While not as well known, Lithium helps companies build websites, blogs, apps, social media and other Internet tools to try and build strong links between companies and their customers. Lithium says it works with more than 300 brands.

Neither company replied to requests for comment.

Martyn Williams covers mobile telecoms, Silicon Valley and general technology breaking news for The IDG News Service. Follow Martyn on Twitter at @martyn_williams. Martyn's e-mail address is martyn_williams@idg.com

Join the CMO newsletter!

Error: Please check your email address.
Show Comments

Supporting Association

Blog Posts

Is AI on course to take over human creativity?

Computers and artificial intelligence have come along at an exponential rate over the past few decades, from being regarded as oversized adding machines to the point where they have played integral roles in some legitimately creative endeavours.

Jason Dooris

CEO and founder, Atomic 212

Are you leading technology changes or is technology leading you?

In a recent conversation with a chief technology officer, he asserted all digital technology changes in his organisation were being led by IT and not by marketing. It made me wonder: How long a marketing function like this could survive?

Jean-Luc Ambrosi

Author, marketer

Disruption Down Under – What’s Amazon’s real competitive advantage?

Savvy shoppers wait in anticipation, while Australian retailers are gearing up for the onslaught. Amazon’s arrival is imminent.

Online brands are increasingly becoming important. It’s essential that all your digital assets have brand values that are in sync with th...

R6S Marketing Agency

Predictions: 16 digital marketing trends for 2016

Read more

Oracle is toothless, it has zero. They don't understand what AI is.

Ilya Geller

Exclusive CMO interview: Where Oracle is heading with AI in marketing

Read more

The concept of liquid expectations is on the rise, and happy customer experience directly relates to the ease of finding a solution. Most...

Karanbir Singh

New digital trends report predicts a year of liquid customer expectations and design thinking

Read more

Great article, Thanks for sharing with us. I would like to recommended list of top customer loyalty software for small to large scale of ...

Matts Frigian

How brands are ramping up customer loyalty program spending in 2017

Read more

“We’re in an arms race for finite attention.”What a statement that is. I am so glad that someone of Steve's caliber comes out about the m...

Peter Strohkorb

Marketo CEO: Ditch the volume game, focus on value

Read more

Latest Podcast

More podcasts

Sign in