TechCrunch provides an in-depth analysis of a landmark decision by the SEC to allow the disclosure of financial information through corporate blogs, instead of using the long-established one-way
communication mechanism known as the press release. In a speech on Wednesday, SEC special counsel Kim McManus outlined new guidance the government regulatory body is about to give companies on when
they can use Web sites like blogs to disclose such information.
"What this means is that we can now finally kill the press release, at least in its current form," said Brian Solis, adding
that the unanimous decision finally legitimizes the use of social media for Regulation FD (fair disclosure). In fact, it paves the way for what Solis calls the Social Media Release.
However,
he doesn't think this spells the imminent demise of the press release. Rather, Solis believes that the first SMRs will complement traditional press releases and other disclosure activity. Companies
will now be able to announce financial results and new products along with links to YouTube videos and iTunes podcasts, all the while allowing room for investors, analysts and enthusiasts to leave
their comments and link to other commentary using platforms like Delicious. Naturally, Solis says, this could spell the death of wire services.
Read the whole story at TechCrunch »