Netflix & SEC: Not a Fascinating Social Media Story At All
January 4, 2013 - 7:00pm
By EconMatters Never a dull moment with Netflix! Last month, the company just announced an exclusive deal to stream Disney movies just months after they are in theaters. The stock was up 5.5% on the news. But a couple of days later, SEC ‘friended’ Netflix by alleging Netflix and its CEO Reed Hastings violated the Reg FD (Regulation Fair Disclosure) over a Facebook post by Hastings and is seeking legal action. As we previously discussed, Hastings posted on his Facebook page on July 3, 2012: "Netflix monthly viewing exceeded 1 billion hours for the first time ever in June. When House of Cards and Arrested Development debut, we'll blow these records away." Netflix was not scheduled to report its full earnings for Q2 until after the market close on July 24. The company stocks jumped 13.4% in two days after that Facebook u...
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