Netflix gets SEC notice over CEO's Facebook postDecember 6, 2012 @ 3:25 pm
NEW YORK (AP) - Netflix says it is facing scrutiny from government regulators over a Facebook post made by CEO Reed Hastings in July.
The company disclosed Thursday that the Securities and Exchange Commission sent notices to Netflix Inc. and Hastings regarding the July 3 public post on Hastings' account. The SEC sent "Wells Notices," giving Netflix and Hastings a chance to argue why the agency should not take action against them.
On July 3 Hastings wrote on Facebook that monthly viewing on Netflix had exceeded 1 billion hours in June. The SEC says that is material investor information that must be disclosed in a regulatory filing or press release. The company says the information isn't material because a few weeks earlier it disclosed on its blog that subscribers were viewing almost a billion hours of content per month. That announcement also was not announced in a press release or an SEC filing.
Shares of the Los Gatos, Calif., company jumped 13.4 percent on July 5.
Hastings responded to the notices with a post on Facebook that was also filed with the SEC, calling it a "fascinating social media story."
Netflix shares rose $2.80, or 3.4 percent, to $86.17 on Thursday after the company announced a multi-year licensing deal with Disney. The stock fell $1.39 to $84.78 in after-hours trading.
(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)
Nature's Reality Check
We can conquer terrorism, cure cancer, but a tornado can remind us of our insecurity
Back to Work
Ten observations from practice that only a backup, middle child, left-handed QB can provide
When Obama is exasperated with the ways of Washington, he dreams of getting honest
Bonneville Media encourages site users to express their opinions by posting comments. Our goal is to maintain a civil dialogue in which readers feel comfortable. At times, the comments can descend to personal attacks. Please do not engage in such behavior. We encourage your thoughtful comments which: have a positive and constructive tone, are on topic, are respectful toward others and their opinions. Bonneville reserves the right to remove comments which do not conform to these criteria.