Description: Not so fast, kiddos. That’s what the Securities and Exchange Commission seems to be saying by warning Netflix (NFLX) that it may sue the company over a single Facebook (FB) update. The SEC’s warning centers on a July 3 Facebook post by Chief Executive Officer Reed Hastings that said Netflix customers streamed more than 1 billion hours of video the previous month. The day of the update, Netflix shares rose 6.2 percent.
Date: Dec 07, 2012
Questions for Discussions:
- Do you agree with the SEC decision?
- How would you interpret “wide distribution” in today’s electronic world of instant electronic communications?