Culture 2 min read

Social Media Measuring Platform Klout Closes Ahead of EU Changes

Klout used to be one of the biggest metrics social media influencers relied on to leverage business deals. Now, the company is shutting its doors on May 25th ahead of the EU's new privacy laws.

Data is everywhere. | Gorodenkoff | Shutterstock.com

Data is everywhere. | Gorodenkoff | Shutterstock.com

This article quickly details the shutdown of the company Klout within the context of changing data privacy laws in Europe.

Klout debuted seven years ago, enabling users to see just how influential they were on social media. After initial success, Lithium Technologies acquired the company in 2014 for a $200-million USD stock deal.

But soon, users will have to use something different to track social media influence.

This shows you how to interpret a Klout score | Wired

A Half-life due to Increasing Data Privacy Concerns

The site assessed user scores based on their presence on various social media platforms.

From Facebook to Instagram to LinkedIn and more, the Klout score fell between 1 and 100. Aspects such as follower count, retweets and shares, as well as the quality of follower accounts affected the overall score.

Microsoft also invested in the company in September 2012, sharing Bing search data with Klout. But the parent company Lithium Technologies no longer sees the value in Klout. CEO Peter Hess commented to ZDNet:

“The Klout acquisition provided Lithium with valuable artificial intelligence (AI) and machine learning capabilities but Klout as a standalone service is not aligned with our long-term strategy.”

The platform announced that it will officially shut down on May 25th.

This is also the day that the European Union starts its General Data Protection Regulation (GDPR) initiative. Perhaps the reality of complying with new laws affected Klout’s efficacy, sparking the shutdown.

Why do you think Lithium Technologies decided to shut down Klout?

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Juliet Childers

Content Specialist and EDGY OG with a (mostly) healthy obsession with video games. She covers Industry buzz including VR/AR, content marketing, cybersecurity, AI, and many more.

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