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AT&T buying Time Warner/Warner Bros./DCTV/DCEU
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Ann Sarnoff has yet to begin her new job as chairman-CEO of Warner Bros., but she already has deep family ties to the entertainment company.

 

When she made her first visit to the Burbank lot last month, she was touched to find that studio staffers had framed for her a memo her father-in-law, Bill Sarnoff, wrote back in 1977 approving a then-unknown Christopher Reeve to play the Man of Steel in the studio’s first live-action “Superman” film.

 

Bill Sarnoff, who worked with the legendary Steve Ross in the late 1960s, had orchestrated the acquisition of DC Comics for Ross’ Kinney Corp. in 1968. The superhero troupe became part of Warner Bros. the following year, when Kinney Corp. bought the studio. Flash-forward 50 years, and the DC trove is more important to the studio’s health than ever.

 

Sarnoff emphasizes that questions of strategy and priorities will only come into focus after she has had the chance to get her arms around the company and meet with employees. Based on her initial impressions, she believes studio staffers in Burbank, New York and far-flung offices around the world are ready to emerge from a few months of uncertainty after Tsujihara’s hasty exit in March.

 

“They’re looking for leadership,” she says. “I got a sense of extreme optimism and a readiness to lean in and figure out what the strategy is going forward.”

 

Sarnoff also is cognizant of the scrutiny that comes with high-profile jobs and the extra layer of responsibility that leaders have to be vigilant about the potential for sexual harassment and other abuses of power. “I lead with my values. I think that’s a super important way to lead,” she says. “You set a tone, you set a mission and you set the values that you expect people to live by. From what I can tell so far, the team is of the same mindset.”

 

As she prepares for her move, Sarnoff is eagerly awaiting the day when she gets to show one particular VIP around Warner Bros.’ Burbank lot for the first time in years: Bill Sarnoff. “He can’t wait to come visit,” she says. “He’s so proud.”

 

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Earlier this month at San Diego Comic-Con, returning attendees noticed a major change on the show’s massive exhibit floor. The booth for DC Comics, which had been a massive standalone pavilion in the center of the publishers’ area in the center of the hall, was gone. America’s oldest and second-largest comic book publisher had retreated to the far back corner of the hall, where it was incorporated into the multi-level WarnerMedia exhibit, in the shadow of banks of giant monitors previewing upcoming shows and cast appearances.

 

The subtext of this move could not have been clearer. AT&T—now the parent company of WarnerMedia and its divisions, including DC Comics (previously known as DC Entertainment), HBO, Turner, and Warner Bros.—does not seem terribly interested in being in the comic book publishing business. It’s telling that in a long profile of AT&T CEO John Stankey this morning in Variety, DC was one of the only WarnerMedia brands that was not mentioned. To the extent that DC matters at all in the company’s future, it’s as a source of owned IP for other media channels and as a lifestyle brand to serve as an ambassador to geek culture.

 

In terms of pure economics, this makes sense. The entire comics publishing business in the U.S., including periodicals, digital and trade, adds up to around $1.1 billion, according to 2018 estimates by industry analyst ICv2. On a good month, about 35% of the revenue from the direct market goes to DC, along with a chunk of trade book sales for perennial titles like Watchmen and The Dark Knight Returns. That wasn’t ever very much in the Time Warner days, and it’s a smaller drop in an even bigger ocean following the AT&T acquisition.

 

Recently, DC co-President Dan DiDio publicly fumed that reissues of comics 30 and 40 years old were outselling current stories featuring the same characters, calling that a “failure on us.” Echoing his predecessor’s warning from years past, he added, “We should be focused on moving things forward, always pushing the boundaries and finding new stories to tell. That’s how we’ll survive and grow this industry.”

 

Looking to the future of comics publishing, DC had a booth at the recent Book Expo trade show for the first time in more than a decade, touting its new line of teen and young adult material, much of which is published direct to trade rather than sold through comic shops. It’s not the most visible part of the company, nor the most directly tied to the familiar DC brand of superheroes, but it could represent the kind of revenues necessary to keep the business alive under the looming corporate axe.

 

Faced with a cash-starved corporate master with an unsentimental, “what have you done for me lately” approach to legacy sub-brands and an urgent need to monetize its new media empire through streaming and licensing, it’s not unreasonable to wonder if even Superman himself is capable of rescuing DC Comics as we’ve known it for the past 80 years.

 

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5 hours ago, Bosco685 said:

The subtext of this move could not have been clearer. AT&T—now the parent company of WarnerMedia and its divisions, including DC Comics (previously known as DC Entertainment), HBO, Turner, and Warner Bros.—does not seem terribly interested in being in the comic book publishing business. It’s telling that in a long profile of AT&T CEO John Stankey this morning in Variety, DC was one of the only WarnerMedia brands that was not mentioned. To the extent that DC matters at all in the company’s future, it’s as a source of owned IP for other media channels and as a lifestyle brand to serve as an ambassador to geek culture.

Very interesting. I always think they will publish Batman and Superman comic books but it wouldn't surprise if they cut way back on publishing other DC characters with these new owners.

:frown:

and also heard whispers that Disney might be thinking the same thing with Marvel but not to the extreme extent like AT&T. :insane:

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2 hours ago, ComicConnoisseur said:

Very interesting. I always think they will publish Batman and Superman comic books but it wouldn't surprise if they cut way back on publishing other DC characters with these new owners.

:frown:

and also heard whispers that Disney might be thinking the same thing with Marvel but not to the extreme extent like AT&T. :insane:

It is early in the acquisition. So the AT&T executive team may not have realized just yet how the comic book line helps serve as a test bed and establishing strong interest in characters leading to better conceptualized TV shows and films targeting this genre.

Will be interesting though to see if it does get there.

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Ann Sarnoff Formally Takes Reins of Warner Bros. as CEO

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The Ann Sarnoff era at Warner Bros. has begun.

 

Sarnoff formally took the reins as Warner Bros. chair-CEO on Thursday, two months after she was appointed to the post. Sarnoff told employees in a memo that she has been impressed by the company’s track record during the past year amid a period of upheaval for the industry in general and Warner Bros. in particular.

 

“Despite the many changes that have occurred across the industry and here at the company, your focus and commitment to excellence have kept us on track to realize our ambitious goals,” Sarnoff wrote in a memo to Warner Bros.’ 8,000 employees worldwide.

 

“This is an exciting—and challenging—time in the entertainment industry, and we need to keep looking at new business models, new competitors, new content platforms and formats—and finding new opportunities,” Sarnoff wrote. “With our talent, expertise and unmatched IP, we’re in a great position to capitalize on them.

 

Sarnoff has set a town hall meeting for studio employees on Sept. 4.

 

Sarnoff moves into the CEO suite vacated in March by Kevin Tsujihara, who was forced to resign amid allegations he used his role as studio chief to land acting jobs for a woman with whom he had an extramarital affair. The unexpected segue at the top of Warner Bros. also coincided with AT&T’s acquisition of Time Warner, Warner Bros. former parent company.

 

Sarnoff was previously president of BBC Worldwide Americas. Here is Sarnoff’s full memo:

--------------------------

Dear Colleagues:

I’ve been looking forward to saying that for two months…

 

Today is my first day at Warner Bros., and I wanted to let you know how proud I am to be joining the company and all of you. Warner Bros. has been the gold standard in entertainment for almost 100 years, and with the efforts of our global team, I believe we can continue that streak for another 100. 

 

I’ve had the chance to meet with the senior management team, and I’m excited to help build on the company’s legacy of creativity and innovation. This is an exciting—and challenging—time in the entertainment industry, and we need to keep looking at new business models, new competitors, new content platforms and formats—and finding new opportunities.  With our talent, expertise and unmatched IP, we’re in a great position to capitalize on them.

 

I’d like to acknowledge that despite the many changes that have occurred across the industry and here at the company, your focus and commitment to excellence have kept us on track to realize our ambitious goals. I cannot thank you enough for your ongoing contributions to Warner Bros.’ success. Every interaction I’ve had has confirmed my belief that a company’s people make the culture, and Warner Bros.’ culture of respect, integrity, creativity and inclusion is a direct result of the passion in each of you.

 

Finally, I want to thank Toby Emmerich, Peter Roth and Kim Williams for stepping in and serving as the interim CEO team. They’ve done a masterful job, and I will continue to rely on them in the days ahead.

 

I look forward to hearing from you and to sharing a little more of my story. As a first step, I’ll be hosting a Town Hall on Wednesday, September 4. You’ll be receiving more information on that later today.

 

In the meantime, I’m going to roll up my sleeves and get busy. Quoting Humphrey Bogart in “Casablanca”— “I think this is the beginning of a beautiful friendship.”

 

I hope to see you all on the 4th.

 

Best regards,

Ann

 

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Sarnoff told Myers her management style is characterized as “leading, motivating” and being “in it for the long game,” adding that “transparency, honesty and integrity” are other values she has emulated from her past bosses.

 

One major theme for Sarnoff and top studio brass is the stewardship of AT&T, which took over Time Warner in 2018 and has been dramatically restructuring WarnerMedia throughout the past few months. Gone is the former silo approach that long defined Time Warner as a loosely affiliated group of nation-states. Cross-department collaboration is now the order of the day.

 

John Stankey, who has led the entertainment and media content unit since 2017, got a big promotion Tuesday to the newly created role of president and chief operating officer. In addition to WarnerMedia, he will also oversee the company’s pay-TV, telecom and advertising units and is considered to be the heir apparent to AT&T CEO Randall Stephenson.

 

One light moment during the “lightning round” at the end of the town hall signaled Sarnoff’s intention to not follow the status quo. Asked to choose between the studio’s DC Comics standard-bearers Batman or Superman, she opted for a different superheroine: “Wonder Woman!”

 

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New CEO makes a major change.

Warner Bros Hires Disney Exec Charlie Coleman As Senior Vice President, Marketing EMEA

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Long-time Disney marketing exec Charlie Coleman has been named Senior Vice President, Marketing EMEA, Warner Bros. Pictures, it was announced today by Julien Noble, Executive Vice President, International Marketing, Warner Bros. Pictures.

 

Coleman takes up position today, Monday 30 September, reporting to Noble.

 

Coleman will be responsible for EMEA development and campaign oversight, leading the regional marketing team including strategy, media, digital, publicity, and creative, working closely with both Burbank-based department heads and territory marketing teams.

 

Coleman previously worked across various roles at Disney for nearly 20 years. His most recent role was Vice President & Managing Director, Franchise Management for The Walt Disney Company, EMEA.

 

He started at Buena Vista International in the UK and subsequently the European Regional Office, where he worked on marketing campaigns for movies including Kill Bill Vol.1 and Vol. 2, The Incredibles and Calendar Girls.

 

He then moved to Walt Disney Studios Motion Pictures in Los Angeles, leading the international marketing partnerships function, delivering promotional campaigns across titles such as Ratatouille, Pirates of the Caribbean: On Stranger Tides and Up. After returning to London he ran some of Disney’s key franchises and brands for the region. In addition, he has led corporate brand management in Europe as well as the cross divisional partnerships team to deliver campaigns for the company’s Disney, Marvel, Pixar and Star Wars titles.

 

Noble said; “Charlie is a highly experienced marketing executive, incredibly creative with an amazing track record. We’ll look to his expertise to help us continue to push our strategic approach for our marketing campaigns. I’m excited for him to join us, he will be an incredible addition to our Warner Bros. team”

 

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Warner Bros said Wednesday that Warner Bros Pictures Group chairman Toby Emmerich has extended his contract with new responsibilities, while New Line president and chief content officer Carolyn Blackwood has been promoted to the newly created position of Warner Bros Pictures Group COO.

 

The moves were revealed by Ann Sarnoff, chair and CEO of Warner Bros chair and CEO Ann Sarnoff, a day after she and the rest of the WarnerMedia brass took the wraps off the HBO Max streaming service that will launch in May, with the film group’s content front and center.

 

As part of his new deal — details were not revealed — the studio said Emmerich, who has headed the WBPG since 2017, will expand his responsibilities to tackle a range of emerging strategic priorities within Warner Bros and WarnerMedia.

 

Blackwood, the 20-year company veteran and most recently New Line’s president and chief content officer, will now be responsible for the group’s day-to-day operations including Physical Production, Business Affairs and Music, while continuing with oversight of New Line and the live-stage division Warner Bros Theatre Ventures.

 

Blackwood will continue to report to Emmerich, as will the Creative Production/Development, Marketing, Distribution and Home Entertainment division chiefs.

 

“Toby is a distinguished entertainment executive whose track record speaks for itself,” Sarnoff said today in a release announcing the news. “Since my arrival at Warner Bros, he has been an extraordinary partner. I am thrilled to have him by my side as we take Warner Bros. and Warner Media forward.”

 

She added of Blackwood: “When you look at the terrific performance of New Line over the years, it’s obvious that Carolyn’s formidable leadership skills have played an integral part in its success. I am excited for her to take on this larger Pictures Group role.”

 

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WarnerMedia CEO Jason Kilar is making his mark on the entertainment giant after just three months on the job.

 

The executive surprised Hollywood on Friday afternoon when he announced a comprehensive reorganization that included the departure of WarnerMedia Entertainment chairman Bob Greenblatt, who’d held that post for just under a year-and-a-half.

 

The shakeup, which Kilar described in a memo to staff as “smart and bold risks” consolidates WarnerMedia’s otherwise unwieldy content divisions into one unit that will be overseen by Warner Bros. chief Ann Sarnoff, a significant promotion for the BBC Worldwide North America executive who has been at the company since last summer. And, in a move that will consolidate programming decision making under one roof, HBO veteran Casey Bloys will report to Sarnoff and oversee a content team that encompasses the premium cable network, streamer HBO Max and a trio of basic cable channels.

 

In an interview with The Hollywood Reporter, Kilar says the purpose of the reorganization was to prioritize three pieces of the WarnerMedia business: its consumer-facing operations, its direct-to-consumer brands and global growth. The former indicates that WarnerMedia will direct its studios to operate less as content wholesalers and more as pipelines to its networks, particularly two-month-old HBO Max, but Kilar maintains that the company is “going to continue to lean into theatrical exhibition.”

 

WarnerMedia’s previous structure complicated the TV pitch process, forcing creatives to take meetings at both HBO and HBO Max, which at times didn’t appear to be communicating with each other about their interest in a project. “It became pretty clear that we needed to have one content organization,” Kilar concedes. But the new structure could also cause confusion for sellers about just where their project will land. Warner executives say it’s unlikely that a project would end up in a home that it wasn’t originally intended to be in, but that in some instances creators might need to decide on a less coveted home if they want to see their film or TV show get made.

 

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Monday, WarnerMedia enacted deep and painful companywide layoffs. DC, the home of heroes such as Batman and Wonder Woman, saw the scythe cut 20 percent of its staff, with many senior editors let go and a reorganization implemented that sent shockwaves through not just the company but through the comic and DC fan community.

 

“This week has been a really heavy difficult time not just for me, but for the entire organization,” Lee tells The Hollywood Reporter via a Zoom call. "We’ve said goodbye to people that have been huge contributors and who have helped define and make DC what it is today.”

As soon as the layoffs news hit Monday, the rumors soon began in earnest: AT&T, which acquired Time Warner in 2018 to form WarnerMedia, wants out of the comics business. Other rumors suggested DC will no longer put out comics and that Lee would be demoted from his role as publisher and chief creative officer.

 

THR brought these rumors (and more) to Lee, who outlined what he could with a reorganization that will take the next two or three months to play out and while the team is still putting on the finishing touches on Fandome, WarmerMedia’s blockbuster fan event set for Aug. 22.

 

“We are still in the business of publishing comics,” Lee adds, saying that there is no work being halted.

 

Yes, there will be more Batman — John Ridley, who won an Oscar for penning 12 Years a Slave, is writing a Batman mini-series (“It will have a huge impact on the rest of the line,” Lee says) — and there will also be the return of Milestone, a label that features under-represented heroes and creators.

 

Lee takes on the fate of DC Universe, changes to the publishing line and the seismic shift the company made amid COVID-19 to break from Diamond Comic Distributors. 

 

Is DC still publishing comics?

 

Absolutely. One hundred percent. It is still the cornerstone of everything that we do. The need for storytelling, updating the mythology, is vital to what we do. The organization leans on us to share and establish the meaningful elements of the content that they need to use and incorporate for all their adaptations. When we think about reaching global audiences, and we see comics as helping drive that awareness and that international brand, it’s very much part of our future.

 

That said, we will be reducing the size of the slate. But it’s about looking at everything and looking at the bottom 20 percent, 25 percent of the line that wasn’t breaking even or was losing money. It’s about more punch for the pound, so to speak, and increasing the margins of the books that we are doing. It was about aligning the books to the franchise brand content we’ve developed and making sure that every book we put out, we put out for a reason.

 

You now have two interim editors-in-chiefs, Marie Javins, who headed digital strategy, and Michele Wells, who headed the YA imprint. How is that going to work?

 

We thought it would be a great pairing to bring them together to help draft and organize the content we’re doing along these lines. Across digital, across global, we want to make sure we have diversity and inclusivity, and making it in a way that we have authenticity to the storytelling that we’re doing.

 

It’s really about consolidating all of our efforts and having every editors involved in all these directives and also organizing, broadly speaking, in content that is for kids 6 to 11 and then 12 to 45. It’s about consolidating format and oversight to a smaller, more concentrated editorial group.

 

 

Do you still have the title of publisher?

 

Yes.

 

Does your job change at all?

 

I have more responsibilities and more expectations than ever before. In conversations with (WarnerMedia CEO) Jason Kilar and (Warner Bros. CEO) Ann Sarnoff and my boss, (Warner Bros. global brands and experiences president) Pam Lifford, they have some very ambitious goals for DC and I’m excited to be a part of that. In that respect, there is more on our plate than ever before.

 

I will continue to be involved as intimately with publishing as I have from the get go. Nothing has changed there. And that’s to focus on the creative content, the content strategy how many books we should be publishing, the formats.

 

We are bringing in a general manager to the organization. My role, the way it was envisioned 10 years ago, was that I would always have a partner that would focus on the operational side. The general manager we’re bringing in has a wealth of marketing experience, global partnership experience, general business development experience. That person will start in September.

 

Do the layoffs or reorganization mean that planned comics are still happening? Are the comics that would have been announced at FanDome still happening?

 

There is no pencils down notice. Everyone has been notified to keep working on all the projects that we’ve already greenlit and started. To that extent, there is no change.

 

DC in the spring broke away from Diamond as its distributor and signed with two new companies. Some people said at the time it would be a mistake. How has it fared?

 

Not only has it exceeded our initial expectations, but the size and strength of the business is that same level or higher than pre-COVID. There was a lot of fear mongering out there about another Heroes World type of debacle that occurred decades ago; there is nothing further from the truth. Things have transitioned very smoothly — that’s not to say there aren't kinks that need to be worked out. UCS and Lunar, they’ve done an amazing job transitioning all the content we produce and putting it into new pipelines and getting it to retailers.

 

And we’ve gotten some tremendous numbers on some of recent books. We’re back to press on the Joker War storyline that has been running in Batman. Multiple printings on that. In fact, every issue since its launch has gone up in numbers and you know how hard that is. Usually when you launch, you start big and the numbers go down. But here it’s climbing issue to issue. We got our numbers for Three Jokers and the first issue sold over 300,000 copies. And that’s an $8 book. That’s a gigantic number for having new distribution.

 

This wasn’t about taking our distribution business and placing it the hands of two entities, it was about, "What can we do together to do things that were never contemplated before." Things that we would love to do to grow the physical market.

 

One rumor I heard this week is that DC is going to only sell trades and OGNs and make a deal with Marvel for them to publish DC’s comics.

 

(Laughs.) There is nothing further from the truth in that. I don’t know where you would even connect those dots. Why would we ever do that?

 

What about the rumor that AT&T hates comics and wants to get out of the comic business?

 

I don’t think they want to stop us from publishing comics. Comics serve a lot of different purposes and one of them is it’s a great way to incubate ideas and creating the next great franchises. We want to continue that. Why would you want to stop that? Why would you want to stop creating great content that could be used across the greater enterprise?

 

What is going to happen to DC Universe?

 

The original content that is on DCU is migrating to HBO Max. Truthfully, that’s the best platform for that content. The amount of content you get, not just DC , but generally from WarnerMedia, is huge and it’s the best value proposition, if I’m allowed to use that marketing term. We feel that is the place for that.

 

In regards to the community and experience that DCU created, and all the backlist content, something like 20.000 to 25,000 different titles, and the way it connected with fans 24-7, there is always going to be a need for that. So we’re excited to transform it and we’ll have more news on what that will look like. It’s definitely not going away.

 

What is the future of DC Direct?

 

When we started, we were one of the first companies, if not the first, to go out and create a business that catered to that specialty market. That success has brought in a lot of competitors and a lot of companies that are now in that space. So it’s about evolving the model. We want to produce those collectible and serve those fans, but we will probably shift to a higher price point collectible and more of a licensing model, working with manufacturers we already work with. From a consumer point of view, there will not be a change or drop off in the quality of the work they are seeing. Behind the scenes, how we create it and how we get it to them is going to change. We still have our principal lead of DC Direct, Jim Fletcher, with the company. He will be showcased in a fun panel with J Scott Campbell at Fandome.

 

Where do you see DC in two years?

 

You’ll definitely see more international content. You’re going to see more digital content. When you talk about growing our business, both physical and digital, to me the opportunities are global. That’s what we’ll be focusing on. Sometimes that takes the form of content that we take here and translate and sell in other marketplaces, but we want to partner with creatives in various territories and unlock stories that feel authentic to their marketplaces with characters that they can embrace as their own, and look for opportunities to take those characters and seed them throughout all our mythology.

 

With digital, that’s more of a windowing issue, meaning we’ll go out there with digital content and the stuff that performs well in digital also performs well in print. A good example of that is Injustice, the digital comics that tied into the video game. When that came out, it was the best-selling digital comic of the year, it outsold Batman. And brought a lot of adjacent fans into our business. And when we took that content and reprinted it in physical form, we sold hundreds of thousands of units. It was as big of a hit in physical as in in digital.

 

We’re using that as a model as we go out and do more digital content. We’ll take the most successful books and repackage it as physical books .I think there is definitely business to be had in physical periodicals. But that said, I think there’s greater upside in digital because we can go to a more global audiences and the barrier to entry, especially in this pandemic, is lower. It’s a lot easier to get digital content into the hands of consumers that want to read stories. We want to lean into that and think thoughtfully what digital content should be, what it should look like, the format.

 

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The hiring frees up publisher Jim Lee to take on expanded responsibilities surrounding the overall DC brand. Daniel Cherry, who hails from the world of Esports, has been named senior vp and general manager of DC Comics.

 

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In the newly created position, the executive, who is coming from video game behemoth Activision Blizzard where he acted as chief marketing officer of its Esports division, will head up business affairs editorial, talent services, marketing, sales, brand and direct to consumer for DC. He will also oversee business development with current senior vp, business strategy, finance and administration, Anne DePies.

 

Cherry begins the job Sept. 8, reporting to Warner Bros. global brands and experience president, Pam Lifford.

 

The hiring frees us Jim Lee, the chief creative officer and publisher, to take on expanded responsibilities surrounding the overall DC brand, according to DC, which made the announcement. The company said that Lee will bring his unmatched creativity, passion and innate knowledge of the DC characters and canon to the company’s efforts to evolve the brand and create relevance for new audiences around the world. He is expected to work closely with Cherry.

 

Cherry’s hiring and the evolving nature of Lee’s comes at a key time for the company. Dan DiDio, who was co-publisher with Lee and took on many operational duties, exited the position in February, giving the company a chance to reframe the job. And Cherry comes in after this summer’s steep WarnerMedia layoffs, which hit DC hard.

 

As CMO for Activision Blizzard Esports, he oversaw the global business, brand and gaming content portfolio, putting him in the rising world of gamers who play in front of fans in arenas and helping turn that spectator activity mainstream.

 

Prior to that, he was chief marketing and innovation officer for the New Jersey Devils NHL franchise. He’s also held marketing and advertising roles at spirits company Diageo, the New York Cosmos, Anomaly and Wieden + Kennedy.  In 2000, he was named Adweek’s Guerilla Marketer of the Year for his work with AND 1.

 

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