Investor relations consultant Dominic Jones notes that Reuters story last week about Google referring investors and others to its Web site to obtain its latest earnings release failed to disclose that its parent company, ThomsonReuters, owns a a PR wire service and stands to lose business if other companies follow Google’s lead.
Jones writes, “The Reuters piece states that when Google issued an advisory release via Market Wire on April 15 urging investors to visit its investor relations website for the full earnings announcement, the company ‘was delivering something called ‘notice and access’ to investors. The U.S. Securities and Exchange Commission requires this, having ruled in 2008 that U.S. companies may use their websites to distribute market-sensitive information.’
“First, ‘notice-and-access’ is a process for delivering annual meeting materials and has never been used by the SEC in connection with news releases. And second, the SEC does not require companies to issue any news releases via a paid PR wire service, much less advisory releases. They are one of several options, but not a requirement. Companies can file 8-K reports with the SEC or they can use their websites if that is their established channel for company disclosures.
“There are also these two ridiculous statements in the Reuters piece. These aren’t attributed to anyone so I guess they are either the reporter’s opinions or the views of Reuters and its parent.”
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