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blogs.sun.com/jonathan
Sun Microsystems CEO Jonathan Schwartz posted on his blog about using blogs for financial disclosure. SEC Chairman Christopher Cox responded positively. |
For a long time, I've
loathed traditional press releases. So do most journalists with whom I've discussed this topic (an admittedly unscientific sample, so take that as you will). In my opinion, the traditional press release is generally a poor format for connecting with journalists.
One of the few clear arguments in favor of retaining traditional press releases -- and the major centralized commercial services, such as PRNewswire, which exist mainly to distribute them -- are SEC financial information disclosure requirements (particularly regulation FD).
On Oct. 2, Sun Microsystems CEO Jonathan Schwartz posted on his blog an open letter to SEC Chairman Christopher Cox. This letter was an impassioned plea "requesting a clarification to Reg FD, one that would permit our (and everyone else) using the internet (e.g., a company blog or Web site) to release material information. Without a press release or operator assisted conference call. We are, after all, the primary source of such material information -- there's no point in going through an intermediary if what we're after is fair disclosure and full transparency. Let the light shine in, don't buy a flashlight."
On Nov. 3, Cox responded to Schwartz's letter via this comment to Schwartz's blog. This is really interesting. First, Cox said that the SEC already considers "certain types of corporate Website postings, including electronic mail alerts" as sufficient disclosure under Regulation FD. I was surprised by this. I would think distribution to any e-mail list, no matter how large, would be considered "selective disclosure." But they're making the rules...
Cox goes on to say: "Assuming that the Commission were to embrace your suggestion that the 'widespread dissemination' requirement of Regulation FD can be satisfied through Web disclosure, among the questions that would need to be addressed is whether there exist effective means to guarantee that a corporation uses its Website in ways that assure broad non-exclusionary access."
...I'd translate that as "We're open to the idea of sites and blogs sufficing for regulatory compliance -- just prove that this is at least as good as the current means we've already approved, such as press releases." Which means that SEC may be viewing press releases as steadily less necessary for achieving its disclosure goals. And again -- they're making the rules.
Sounds like one big nail being hammered into the coffin of the traditional press release. I'll bring a bottle of wine to the wake.
...Meanwhile, over at the Wall Street Journal Law Blog, Peter Lattman wrote, "We’re jealous. SEC Chairman Christopher Cox posted a comment on a blog. But not the Law Blog. ...We’ve got a serious case of the Monday morning blues and it would turn our day around if you posted a comment on the Law Blog. Don’t worry, we don’t want your thoughts on Reg FD or hedge funds. Keep it light: Tell us about the last movie you saw. Your favorite book? Thanksgiving plans?"
(Thanks to Kevin Dugan for the tip, even though he doesn't think this spells the end of the press release.)
