Companies can use social media like Facebook and Twitter to disclose important business information, but they need to make sure in advance that investors know where to look, the U.S. Securities and Exchange Commission concluded in a report issued on Tuesday.
The report was prompted by an SEC investigation of Netflix chief executive officer Reed Hastings, who on July 3, 2012, wrote on his personal Facebook page, "Congrats to Ted Sarados, and his amazing content licensing team. Netflix monthly viewing exceeded 1 billion hours for the first time ever in June."
