Hastings not standing for re-election
Netflix (NFLX) chief executive Reed Hastings will not stand for re-election to Facebook’s (FB) board of directors next month. Instead, Facebook has nominated Peggy Alford, a PayPal (PYPL) executive, to stand for election to its board.
Under Facebook’s board membership rules, directors are required to step down after they attain 73 years of age. Although Netflix’s Hastings has been sitting on Facebook’s board since 2011, he’s only 58—way below the mandatory retirement age. As such, his departure could mean more than meets the eye.
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Facebook executive dropped from Disney board
Although Netflix and Facebook serve different markets, their ambitions are beginning to clash. Both companies run digital video businesses, meaning they compete for customers even though Netflix’s service is offered on paid subscription whereas Facebook service is supported by advertising.
Conflicts of interest in the video business last year saw Disney (DIS) remove Facebook and Twitter (TWTR) executives from its board of directors. It’s unclear whether Hastings’ exit from Facebook’s board has something to do with a conflict of interest between his company and the social media powerhouse.
Netflix incurred $4.1 billion in operating expenses
Netflix charges customers a monthly fee to access its expanding library of shows, movies, and documentaries. The company posted a profit of $344.1 million on revenue of $4.5 billion in the first quarter after absorbing more than $4.1 billion in operating expenses, consisting of $372.8 million in product development costs.