Social Media Assets In M&A Transactions

A company’s social media pages and profiles, and associated followers, friends and other connections, may constitute valuable business assets. However, they often receive little attention in M&A transactions. Purchasers generally require sellers to make robust representations and warranties regarding the target company’s assets, but a typical purchase agreement may give social media assets only cursory treatment or not explicitly cover them at all. It should, says Morrison & Foerster attorney Aaron Rubin, and in this Today’s General Counsel article, he outlines a set of representations and warranties that a purchaser can consider as a way to do it.