In Netflix Case, a Chance to Re-examine Old Rules

In July of this year the CEO of Netflix, Reed Hastings posted this on his facebook: “Netflix monthly viewing exceeded 1 billion hours for the first time ever in June.”

Since then the S.E.C. has launched a probe to determine if–through this social media post–the video streaming company violated  “the Regulation Fair Disclosure rule, commonly known as Reg FD, which requires a company to announce information that is material to its business to all investors at the same time.”

Steven Davidoff of the New York Times examines the two critical aspects of this case: 1) Is facebook a public space where investors and analysts know to receive information? And 2) Did the post contain material information?

Struggling to keep pace with our modes of information consumption, regulators reveal their outdated framework.

About these ads
Tagged , , , , , , ,

Your Thoughts?

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

Join 575 other followers

%d bloggers like this: