Klout has trusted people, trusted content, and a direct consumer brand. The dataset of 500 million consumers is considered one of the best in the world. Lithium has trusted content through their 100 million users across their communities. Combine both assets and you have the best ability to find your most valuable customers and also provide the best service to existing customers.
Both Lithium and Klout have proven their expertise and capabilities in driving customer engagement in both business and marketing relationships. The union of these two companies create a marketing database of more than 500 million users worldwide, across a wide demographic footprint. This merger offers an excellent chance for the new combined company to develop an international marketing powerhouse.
Given the fact that this is an expensive site, that most would say is to much to bank on any site. But given the benefits that this site could offer. What is it that this site is capable of, what can it produce for many people to go by. When you look at an investment like this you have to think about what was the purpose behind this. What are they looking to get out of this site as well.
In a situation like this where a company purchases another for a large sum of money, one can assume it will mutually benefit both parties. The investor sees high value in the property they just purchased and will put it to the most productive use possible. For the company that was purchased, it now has the weight and influence of the purchaser behind it, all but guaranteeing its success in the future.
I do not believe the social media site Klout is worth $200 million and I believe the purchase will negatively impact Lithium Technologies in the long run. I believe the product name is bad enough that it will never catch on. People hate Facebook, but they're not going to trade it for something as arrogant sounding as Klout.