Klout may have found $100M exit courtesy of Lithium Technologies


Credit: Gigaom Illustration

Perhaps embattled social scoring platform Klout no longer needs to secure that comeback CEO Joe Fernandez wanted. According to report from Recode, customer service cloud software company Lithium Technologies is in the final stages of acquiring the startup for $100 million.

It seems like an interesting time to sell, given that Fernandez recently spoke to The Next Web about Klout’s latest “evolution” — a focus on sharing and engaging with content that pushed aside the Klout Score, a proprietary metric meant to measure influence on social networks like Twitter (s twtr) and Facebook (s fb). But if the acquisition is true, then it’s likely that the Klout Score will get a lot more attention from Lithium, a company that is known for consumer insights for brands and websites.

But Klout has struggled to find its footing over the last few years after raising a $30 million Series C in 2012 (based on a $200 million valuation). Tweaking algorithms, launching Klout for Business, and even partnering up with services like Bing haven’t pushed Klout much beyond its initial influencers.

Both Klout and Lithium declined requests for comment on the report.



Deepscribe, you obviously work in social media, and I cannot wait until the drivel you posted, and the nonsense behind social media, will be blown into the world of the tempest – full of sound and fury, signifying nothing.


I think Klout is suffering more from a business model that lags socially behind Facebook, and in utility behind LinkedIn. Klout aims to bridge reputation and presence, but in the real world these two aspects are particular to the person. While one may use less formal means (musician, photographer, artist) that Facebook can be useful, Klout misses the point. I think a clear definition of what Klout aims to do for us, instead of it trying to tell us something we don’t already know.

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