Bloomberg BNA Mergers and Acquisitions Law Report Guest Article: Buyer Beware: Social Media Due Diligence in M&A

10/22/2014

The social media landscape has advanced rapidly and is changing the way all businesses operate. Social media sites such as Facebook, Twitter, Pinterest, LinkedIn, YouTube, Instagram, Tumblr and various interactive blogs and collaboration tools that were once tools used primarily by individuals but they have now changed the way that business communication occurs as well. Through the use of social media, individuals as well as companies disseminate information to a widespread audience instantaneously. As a result of these capabilities, many companies have incorporated social media into their business strategies to promote their products and services to existing and potential customers.

This was likely a driver in Twitter’s acquisition of BackType, a social analytics company that helps brands and agencies understand the business impact of social media in order to make more intelligent business decisions. The growth in the industry is evidenced by the later combination of Bazaarvoice’s with its competitor social analytics company PowerReviews in 2012 that resulted in an antitrust investigation by the U.S. Department of Justice and recently Bazaarvoice’s subsequent decision to sell PowerReviews to yet another industry player. Moreover, in the spring of 2011, it was reported that 77 percent of the Fortune Global 100 companies use Twitter, 61 percent have a Facebook page, 57 percent use YouTube, and 36 percent use corporate blogs. These numbers have continued to rise as more companies are forced to integrate social media into their businesses to remain competitive within their respective markets.

Excerpted from Bloomberg BNA Mergers and Acquisitions Law Report, October 22, 2014. To view full article, click the PDF below.

Excerpted with permission from Mergers & Acquisitions Law Report, 17 MALR 1508 (Oct. 20, 2014). Copyright 2014 by The Bureau of National Affairs, Inc. (800-372-1033) http://www.bna.com.

Bloomberg BNA Mergers and Acquisitions Law Report - Buyer Beware Social Media Due Diligence in MA.pdf

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