Business Wire Says Social Media Platforms Are Only One Component ofFull and
Fair Disclosure and Offers Issuers a Guide on How to Effectively Use Social
NEW YORK -- April 04, 2013
While Business Wire is strongly supportive of social media tools, web posting
on company web sites, and blogging as supplemental platforms to communicate
material information, Business Wire believes that a broadly disseminated news
release -- distributed simultaneously and in real-time via a legitimate news
wire service -- is still the most effective way to maximize investor outreach,
and to inclusively serve the needs of all market participants.
In Business Wire's view, the SEC's latest guidance on the possible standalone
use of social media platforms for regulatory compliance purposes poses a
disservice to the investment community, threatening increased fragmentation of
price-sensitive information, privacy concerns as users are required to
register to gain access to material news, security risks that may adversely
affect market stability, and the loss of simultaneity -- and the "level
playing field" -- that is at the core of Regulation Fair Disclosure.
Business Wire, which makes extensive use of Twitter (with 61 industry Twitter
feeds) and other social media tools as part of its multi-channel distribution
platform, believes that social media should be leveraged as part of a broader
news dissemination strategy. Reliance on social media alone, even in
accordance with the SEC's newly issued guidelines, will likely negatively
impact market fairness and investor awareness.
However, social media used in conjunction with Reg FD-compliant disclosure
vehicles, including a broadly circulated news release, an 8-K filing, and an
IR web site, is a valuable adjunct that extends the reach of investor
communications. "Best Practices" dictate that investor relations professionals
utilize the full ensemble of communications tools at their disposal.
+ A Teachable Moment: Social Media Tips for Investor Relations (BusinessWired
"Protecting our clients' sensitive information is at the core of what we do,
and we'll continue to do that in the most secure and innovative way possible,"
said Cathy Baron Tamraz, Business Wire's chairwoman and CEO. "Social media can
be a valuable part of the investor relations ecosystem, but it should not be
the core. Social media has been an integral part of our distribution platform
for many years, and we also hold two social media patents. However, we are
wary of unintended consequences by limiting access to a single site that
doesn't have the security, reliability, or interface to reliably serve the
entire investment community."
Business Wire prides itself on its patented internet news delivery network
that ensure simultaneous, real-time distribution of material news to all
network market participants worldwide. As the world's leading regulatory
compliance service -- satisfying disclosure in 14 markets throughout North
America and Europe -- Business Wire is subject to rigorous independent audits
of its network security, technical systems and organizational infrastructure,
and editorial procedures, to validate that it meets the stringent criteria of
securities regulators, including the FSA in the UK, the AMF in France and the
TMX in Canada.
Business Wire also provides a complete audit trail that provides publicly
listed companies with priceless "peace of mind" in the event of a regulatory
As the industry's technology leader with five patents -- including "NX," the
news delivery system that revolutionized the information industry when it was
introduced in 2003 -- Business Wire is a strong proponent of harnessing new
communications solutions. Business Wire remains a firm believer in taking a
holistic approach to news distribution and investor relations, using its
dynamic Internet-based platform as the backbone of its worldwide network, and
continually bolstering its reach by adapting emerging technologies for its
clients' constantly changing needs.
About Business Wire
Business Wire, aBerkshire Hathawaycompany, is the global leader inpress
release distributionandregulatory disclosure. Investor relations, public
relations, public policyand marketing professionals rely on Business Wireto
accurately distributemarket-movingnews and multimedia, hostonline newsrooms
and IRwebsites, buildcontent marketing platformsand provide audience
analysisthat improves engagement with specified target markets. Founded in
1961, Business Wire is a trustedsource for news organizations, journalists,
investment professionals and regulatory authorities, deliveringnews directly
into editorial systems and leading online news sources, while boosting SEO and
social media engagement via its multi-patented simultaneousNX Network.
Business Wire has more than 30 bureaus worldwide to securely meet the varying
needs of communications professionals and news consumers.
Learn more at BusinessWire.com and the BusinessWired blog; follow updates on
Twitter: @businesswire or on Facebook.
Click here to subscribe to Mobile Alerts for Business Wire.
Tom Becktold, Senior Vice President, Marketing
310-820-9473, ext. 115
Press spacebar to pause and continue. Press esc to stop.