“Apple Inc.’s foray into original TV shows and movies is increasing competition with Walt Disney Co., potentially putting Bob Iger’s board seat at the iPhone maker at risk,” Mark Gurman reports for Bloomberg. “Apple has been buying shows and movies at festivals and funding its own content that the company plans to package this year into a streaming video service. It’s set to preview the offering with Hollywood stars at an event March 25 in Cupertino, California.”
“Apple’s recent proxy statements said the company has ‘arms-length commercial dealings’ with Disney, including digital services content licensing agreements. But the filings added that Iger, chief executive officer of Disney, doesn’t have “a material direct or indirect interest” in those deals,” Gurman reports. “That could change as both companies launch streaming services that compete with each other.”
“‘They might have to recognize that they will become active competitors in the near future,’ said John Coffee, director of the Center on Corporate Governance at Columbia Law School,” Gurman reports. “He suspects both companies have legal advisers looking into whether Iger should remain on Apple’s board. The Clayton Antitrust Act of 1914 limits directors from serving on their own board and that of a competitor, Coffee noted.”
Read more in the full article here.
MacDailyNews Take: Yes, Iger will likely have to bid farewell to Apple’s BoD, unfortunately.
Hopefully, it doesn’t take nearly as long as the ridiculous Eric Schmidt situation where the mole sat of Apple’s BoD well into the iPhone era, not resigning until August 3, 2009, well after Apple’s iPhone innovations were being knocked off in Android.
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