Bloomberg Publishes Premature Obituary for Steve Jobs

On Wednesday, Apple fans and investors alike were taken by surprise when an obituary of legendary Apple founder and CEO Steve Jobs began circulating on the internet. Apparently, the Bloomberg Financial Newswire was attempting to update their already-written version and inadvertently sent it out. Although it was subsequently taken down, the impact was already done. Since Steve Jobs' battle with pancreatic cancer beginning in mid-2004, Jobs' health has been of increasing concern for everyone who follows the company.

As recently as this year's Worldwide Developer's Conference, there was serious concern about Steve Jobs' appearance, which was described by one reporter, Jim Goldman of CNBC's Tech Check, as a "drawn, gaunt, wan appearance." Goldman was one of two reporters to have a face-to-face chat with Jobs, and was unsure whether Jobs' appearance was worthy of concern. Apple stock tanked immediately following the WWDC because of Jobs' appearance and lack of onstage screen time during his own keynote address.

As it turns out, the obituary leak was an honest mistake. News organizations write preliminary obituaries of celebrities and influential people all the time, just to be ready in case they need to take something to print quickly. But with Jobs, health was already a touchy issue and the presence of a 17-page obituary was more than enough to jolt Apple shareholders and concerned webgoers. Bloomberg took down the obituary soon after it was accidentally sent, but not before Gawker.com had captured the whole document. Following the mistake, the editor posted a retraction that said:

"An incomplete story referencing Apple Inc. was inadvertently published by Bloomberg News at 4:27 p.m. New York time today. The item was never meant for publication and has been retracted."

After consistent secrecy regarding Jobs' condition from Apple spokespeople, a significant event occurred. On July 26, the The New York Times published the fruits of an off-the-record phone discussion between Jobs and columnist Joe Nocera, in which Jobs was asked about his health problems. Jobs refused to disclose details with Joe unless they were "off the record," so while specific information about Jobs' health is unavailable to everyone but Joe, his problems are not considered to be "life threatening and he doesn't have a recurrence of cancer." Because this was the only information anyone knew about Jobs' health when the Bloomberg obituary was released, the reaction was understandable. It is also significant to note that Jobs is easily one of the most influential chief executives of any company, tech or otherwise. This causes investors and shareholders to place a greater importance on the health and welfare of Apple's CEO than they would at other companies. It is difficult to distinguish between Apple and Steve Jobs.

The entire situation brings up a question that the SEC has weighed in on already: At what point should a CEO be obligated to report the status of his health? The answer, according to the SEC, as quoted in Jim Goldman's article, is that information must be given at such time that "the reasonable investor needs to know in order to make an informed decision about his investment." Does this validate Jobs' secrecy? Is it right for him to hide details about his condition when he is such a critical part of his company's continued success? There's no real precedent set so far, but Apple and Jobs are a package deal. Hopefully, Steve Jobs won't be the one to set any precedent on it.

SOURCES:

Goldman, Jim. Steve Jobs' Mark Twain Moment: "Reports of My Death...", CNBC
Nocera, Joe. Apple's Culture of Secrecy, The New York Times
Steve Jobs' Obituary, As Run By Bloomberg, Gawker