NEW YORK: The Nasdaq Stock Market has entered into a pact with LA-based Market Wire that will see the stock market promote the company as a preferred distributor of press releases among its listed firms.
The deal helps Market Wire, formerly known as Internet Wire, in its efforts to compete with the industry's two most dominant players, Business Wire and PR Newswire.
While the exact terms of the deal where not disclosed, Market Wire confirmed that Nasdaq would get a warrant in Market Wire that it can exercise for what the company termed a "meaningful stake" in the wire service provider.
Market Wire gained public notoriety in the summer of 2000, when it unwittingly published a bogus release about technology company Emulex, which sent shares of that company reeling after the phony release was picked up by the media.
Since that incident, the company has not only changed its name, it also says it has beefed up its security.
"That happened a while back now, and we have taken significant steps to ensure that our security is at least as strong as any company in this industry, and perhaps even stronger now," said Jim McGovern, CEO of Market Wire.