Disney's video streaming plans mean Twitter's Jack Dorsey and Facebook's Sheryl Sandberg have to leave its board
The CEO of Twitter and COO of Facebook are leaving Disney's board due to conflicts of interest, as Disney gears up to launch a digital streaming service to rival Netflix.
On Friday, the entertainment giant announced that chief operating officer Sheryl Sandberg and chief exec Jack Dorsey will not not be seeking re-election to its board.For years, companies like Facebook and Twitter have insisted that they are technology firms rather than traditional media companies. But in recent months they have faced increased scrutiny over their responsibility for the media that appears on their platforms. Meanwhile, Disney is preparing to move more directly into the technology space with the launch of a major streaming service in 2019 - and so the two senior execs and the entertainment company are parting ways.
"Given our evolving businesses and the businesses of Ms. Sandberg and Mr. Dorsey are in, it has become increasingly difficult for them to avoid conflicts relating to Boad matters, and they are not standing for re-election," Disney said in a statement.
Robert Matschullat, former Seagram Company vice chairman, will also leave Disney's board because the company limits service to 15 years, the company said. Orin Smith, former CEO of Starbucks Corp, will depart - due to rules that specify retirement at age 74.