The Disney’s board of directors will be witnessing a major change as two high profile tech executives would soon be leaving Disney’s board.
Because of the conflicts caused due to increasing competition between media and technology companies, Twitter’s CEO Jack Dorsey and Facebook’s chief operating officer Sheryl Sandberg are going to step down from Walt Disney Co.’s board of directors.
According to reports, the two tech giants won’t be contesting at the re-election scheduled for the 8th of March. Because of term and age limits, the independent director Orin Smith (75) and Robert Matschullat (70) will not be running for the re-election for board members at the annual meeting.
A statement issued by Disney said, “Given our evolving business and the businesses Ms. Sandberg and Mr. Dorsey are in, it has become increasingly difficult for them to avoid conflicts relating to board matters.”
The Twitter CEO has been a board member since 2013 and Sandberg is on the board since 2010. These two giants stepping down from Disney’s board could be because of Twitter and Facebook’s shift towards the entertainment business in the last few years.
Twitter, who has recently entered the sports broadcasting business, could be a potential threat to ESPN, which is a Disney channel. Earlier this year, Facebook too has launched its “Watch” tab.
So, given the competition, Sandberg and Dorsey’s decision to step down from Disney’s board is a very practical move on the part of the two tech giants.
Information source: bloomberg
Cover image source: businesstimes