Klout is being acquired by Lithium Technologies for at least $100 million, based on reports.
Technology blog Re/Code reported that both companies have agreed to the deal but the numbers from its sources are just an estimate and will be a combination of private stocks and cash.
"The deal is signed but not closed, said sources. And, while the numbers are fuzzy given they account for a mix of cash and Lithium private stock, the acquisition is 'in the low nine figures' - that is, at least $100 million," reported Re/Code.
Klout can be considered as the vanity mirror of social media users. It makes use of an algorithm that scores an individual based on one's activities and interaction on Facebook, Twitter, Google+, LinkedIn, Instagram, YouTube, and other social networks.
The company launched in 2008 and has worked with some of the biggest brands in the business world such as Nike, Disney, and Starbucks. It introduced Klout Perks, a program where businesses provide certain benefits in exchange for promotion via Twitter, in 2010. Klout also has data licensing agreements with Microsoft and other companies. It's latest business model offers users a stream of content that they can share in order to increase the chances of improving their Klout scores.
"Klout now provides tools for not only measuring your online influence, but also increasing it. We're unlocking the power of our data to help you create content that gets more reactions online. Over the next few weeks we'll be releasing tools to help with original content creation as well as a new version of our iOS app that will incorporate many of the features in the web version. We also have an Android app in the works as well," explained Klout chief product officer Sanjay Desai.
Klout was valued at around $200 million in 2012 with the injection of a minimum $40 million funding from investors such as Institutional Venture Partners, Kleiner Perkins Caufield & Byers, and Mayfield Fund.
As of reporting, Klout has not issued a statement about the said acquisition.
Meanwhile, Lithium Technologies is in the business of creating customer service tools for businesses that they can use on social media networks. The purchase will allow the company to tap into Klout's 500 million score profiles, 15 billion social signals on a daily basis, plus its partnership with Microsoft. The deal will also give brands a peek who are talking about their services or products.
