Posted by & filed under Governments & Regulators, Growth & Valuation, Management Issues.

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.

Source: Businessweek.com

Date: Dec 07, 2012

Link:  http://www.businessweek.com/articles/2012-12-07/netflix-shows-facebook-is-not-the-internet-yet#r=nav-r-story

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?

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