What started as a conversation on Jonathan Schwartz’ blog at Sun Micro systems has been accepted by the SEC. ON July 30th the SEC voted that a website or a corporate blog is a valid place to post corporate news.
There are new guidelines that cover how a public company can use a Web site and/or corporate blog to meet Regulation FD’s public disclosure requirements.
What could more mainstream than that?
“The last time the SEC issued guidance in this area, the idea of ’social networks’ hadn’t yet been developed, and creating a social network where shareholders could meet and exchange views was barely imaginable,” said SEC Chairman Christopher Cox. “Ongoing developments in technology have increased both the markets’ and investors’ demand for more timely company disclosure on the Web, and in turn, raised new securities law issues for public companies to consider. The guidance issued today clarifies the rules of the road so investors can gain — quickly and in a cost-effective manner — the benefits of Internet disclosure of the latest information on the companies they own or are considering buying.”
What does this mean for PR?
A public company can now put a social media press release on their corporate blog and it will be considered disclosure. Social media newsrooms become a lot more desirable when they can be used to release corporate news.
