If you thought that social media could not have an effect on your business because it’s not consumer focused, go ask the folks at Transense Technologies.
Their customers are large automotive manufacturers. Transense makes devices which improve the control of a car by monitoring tyre pressure.
It was only a few weeks ago that the company announced its intention to acquire a larger business, Bishop Technologies, and that they were to raise £5.7 million to transact the deal. And, as a result Bishop senior management would take over the running of Transense.
Because of recent US legislation requiring car manufacturers to use products like Transense’s, private shareholder think that profits are just around the corner, so in their view the Bishop acquisition is a really bad idea.
They voiced their opposition online…on investment community bulletin boards and quickly attracted a wide audience. Then they got organised, quickly. Within three weeks shareholders came up with a plan to raise £4m among themselves, got enough votes to block the Bishop deal and replaced the Transense management with their own team.
Anthony Hilton, City commentator on London’s Evening Standard wrote in PR Week, “…what has happened…since October is a dramatic illustration of how the Internet can rob a board of its power by making possible alternative methods of communication among shareholders.”
All companies,large and small, public and private, consumer or industrial, should pay heed to the Transense Technologies saga. Social media can have an impact on everyone.