In a move only made possibly by a recent SEC announcement giving companies the OK to communicate with investors via social media, Yahoo CEO Marissa Mayer tweeted that Yahoo will be acquiring the micro-blogging site Tumblr.
Photo: I’m delighted to announce that we’ve reached an agreement to acquire Tumblr! We promise not to screw… http://t.co/qc9hRQBxSz
— marissamayer (@marissamayer) May 20, 2013
Searching for relevancy among increasingly younger Internet users, Mayer acquired the site for $1.1 billion with the promise not to “screw it up.”
“Certainly Yahoo has a track record of taking cool and making it uncool,” said Altimeter Group analyst Brian Solis. “Marissa Mayer is trying to bring Yahoo’s brand appeal to a different type of audience. Yahoo sees this as a path to future relevance,” the Los Angeles Times reports.
While the deal has been reported on extensively, with news outlets praising Mayer for her use of an animated gif, it is important to note that the official announcement on the acquisition was on social media.
Recognizing that “most social media are perfectly suitable methods for communicating with investors,” the Securities and Exchange Commission (SEC) announced last month that it was acceptable for companies to use social networks like Facebook or Twitter to disclose information to investors.
Since the announcement, a false tweet sent by a hacker on the AP Twitter account caused the stock market to drastically drop, proving that the newly significant impact of social media on the stock market can have real world consequences.
After news of this morning’s deal, Yahoo shares rose 0.6% to $26.67, further signaling the significance of social media in the business world.