(edit: Pierson’s full quote appears below. The initial post paraphrased and omitted a competitor)
The explosion of online news and changes in the media in recent years have prompted a lot of discussion on how much people trust the media, but a recent incident highlights just who it is that the media themselves trust.
Reuters reporter Ransdell Pierson writes about a recent incident in which an unknown party called his office on a Sunday to fax a press release detailing an offer to buy Harman International Industries at a 100% premium from their most recent closing price.
“If it’s such a big transaction, shouldn’t this news be coming over the PRNewswire or BusinessWire?”
Unable to verify the information on the release, Pierson decided not to run it, nor did any major news outlets. But it popped up in enough places to spike Harman’s share price. Now, the SEC is suing several parties in Kuwait and Bahrain to recover profits from what appear to be suspicious trades based on the takeover offer, which was in fact fraudulent.
Pierson’s response is a good indicator of how the financial news community views Business Wire — as a legitimate, credible source of news. It’s a reputation we’ve built over the 48 years, and we’ve done so by ensuring that fraudulent news never makes it to the wire.
Before we’ll send out a press release, we vet it thoroughly, making sure first that the issuing party has properly established membership with Business Wire and is a legitimate organization.
We also have newsrooms staffed 24/7, with experienced editors and staff available around the clock to look at every press release and ensure that it’s real news. A press release dealing with a known company like Harman — a Business Wire user — and from a company who had not established membership with us and whose existence could not be verified, would not have made it out over our wire.
The media look to us for credibility and legitimacy, and your company can as well. Our experienced staff and security procedures make us a trusted source for any kind of news.