Standard of influence tool Klout to be Purchased for $100M

Social web startup Klout that has struggled to build users is up for sale for $100 million and Lithium Technologies is looking to buy. Klout offers users a score by combining data across social media to see how brands and tweets influence people.

It has worked with Disney, Nike and Starbucks to help identify and reach out to online influencers. However, the company has failed to make Klout a mainstream tool for the public.

The recently redesigned interface is aimed at moving beyond just offering companies a score to showing users how they can create and share content for the most impact.

“We built the Internet standard for influence and reputation, but didn’t have consumer utility,” Joe Fernandez, CEO of Klout said. “It’s a big step for our company. It’s also an internally scary transition—from being focused on the score to trying to be a utility for the world.”

Currently no details of the pending purchase by internet marketing firm, Lithium Technologies has been released, sources close to the negotiations are saying that the deal should reach the $100 million mark.

Klout initially began with $40 million from venture capitalists and after just two years, the company has been valued at the $200 million price mark.

Source: www.dailygadgetry.com