The scope and method of imparting distance education to the learner has evolved over a period of time. Various models of distance education have been introduced over the years; the latest introduction is the use of Web 2.0 technologies to make distance learning more analytical, flexible, interactive, and collaborative for both the teacher and the taught. This research paper has assessed the purpose of usage of social media tools, specifically Facebook, Blogs, Google groups, SkyDrive and Twitter by the students for academic purposes. Further, the relationship between usage of Facebook and academic performance of students has been tested statistically. The study reveals that majority of the students access various social media tools for information sharing and personal interaction. The academic performance of the students is independent of the use of Facebook as a social media tool for academic purpose.