Netflix to Investors: Use Social Media to Follow Us10 Apr, 2013 By: Erik Gruenwedel
Following aborted enforcement action by the Securities and Exchange Commission against CEO Reed Hastings for disclosing material company information on his Facebook page last summer, Netflix April 10 issued a regulatory filing outlining social media links investors, media and interested parties should visit to stay abreast of the subscription video-on-demand pioneer’s activities.
“We use these channels as well as social media to communicate with our subscribers and the public about our company, our services and other issues,” CFO David Wells said in the filing. “It is possible that the information we post on social media could be deemed to be material information. Therefore, in light of the SEC’s guidance, we encourage investors, the media and others interested in our company to review the information we post on the social media channels.”
On April 2, the SEC announced it would not to pursue an enforcement action against Hastings and Netflix. Each received a “Wells Notice” from the SEC staff indicating its intent to recommend that the commission bring enforcement proceedings against Netflix and Hastings for alleged violations of the Regulation Fair Disclosure of the Securities Exchange Act.
Netflix reports first-quarter results April 22.