Klout, a social score measuring startup has recently been acquired by Lithium Technologies, as disclosed in a company announcement. Individual emails were also send to the Klout users in order to let them know about the acquisition. Although, the deal amount has not been disclosed in the release, it is said to be USD 200 million by TOI.
Klout was founded in 2008 by Joe Fernandez and Binh Tran with an aim to help people understand and be recognized for the impact of their voice. The platform measures influence based on the ability to drive action across the social web. Any person can connect their social network accounts and Klout will generate a score on a scale of 1-100 that represents their ability to engage other people and inspire social actions.
Lithium, on the other hand, powers Social Customer Experiences for more than 400 brands and helps companies grow brand advocacy, drive sales, reduce costs and accelerate innovation to create social communities that redefine the customer experience. The company is privately held with corporate headquarters in San Francisco and offices across Europe, Asia and Australia.
Rob Tarkoff, Lithium President and CEO believes that trust is the currency online and for brands, building a trusted reputation allows them to better find and keep customers.
Considering the potential both the companies posses, with this deal, Together, they will reach more than 500 million consumers across 10,000 specific interest areas, and 300+ branded communities.
“Lithium powers many of the most vibrant communities online for leading brands like Spotify, Skype and Sephora. Together, we can do more to help you share your passions, measure your impact and grow your reputation,” said Joe Fernandez, CEO & Co-Founder, Klout in his personalized mail to the users.
Post acquisition, Fernandez will join Lithium’s executive team, reporting directly to Tarkoff, and will continue to run the Klout operation as its General Manager and a Senior Vice President at Lithium.Chi-Hua Chien from Kleiner Perkins Caufield & Byers will join the Lithium board of directors.
Klout will maintain its consumer offering and continue to deliver Klout Perks to the market. In addition, Lithium will deliver an expanded product portfolio built around advocacy, loyalty, and enhanced profiles. The company will share this future product roadmap and go to market details at LiNC 2014.
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