Target Names Brian Cornell CEO
Target Corporation announced that its board of directors has named Brian Cornell as the company’s next chairman of the board of directors and CEO, effective August 12. Cornell joins Target with more than 30 years of experience at some of the nation’s leading retail and consumer product companies. As Target’s new CEO, Cornell’s top priorities will be accelerating the company’s performance and advancing its omnichannel evolution, according to a statement from Target.
Cornell most recently served as the CEO of PepsiCo Americas Foods where he oversaw the company’s global food business. Before joining PepsiCo in 2012, Cornell served as president and CEO of Sam’s Club, a division of Wal-Mart Stores, Inc. Cornell also held the position of CEO at Michaels Stores, Inc., and prior to that, executive vice-president and CMO for Safeway.
DreamWorks Animation Reports Q2 2014
DreamWorks Animation SKG, Inc., announced financial results for its second quarter ended June 30, 2014. For the quarter, the company reported total revenue of $122.3 million, a net loss attributable to the company of $15.4 million, or a loss of $0.18 per share.
“How to Train Your Dragon 2 is the ninth highest-grossing film of the year so far on a worldwide basis and it has yet to be released in several significant international territories,” said Jeffrey Katzenberg, CEO of DreamWorks Animation, in a statement. “It will be a highly profitable film for the company and DreamWorks Dragons will remain a very valuable franchise for many years to come.”
The feature film segment contributed revenue of $69.7 million and gross profit of $23.9 million to the second quarter.
How to Train Your Dragon 2, which was released theatrically on June 13, 2014, has reached $166 million at the domestic box office and $262 million at the international box office for a worldwide gross of $428 million to date. The film contributed feature film revenue of $2.6 million to the second quarter and remains in an un-recouped position with the company’s primary distributor.
Mr. Peabody & Sherman contributed feature film revenue of $1.5 million to the second quarter and remains in an un-recouped position with the company’s distributor.
Turbo contributed feature film revenue of $11 million to the second quarter, primarily from home entertainment and international pay television. The film reached an estimated 5.1 million home entertainment units sold worldwide through the end of the second quarter, net of actual and estimated future returns.
The Croods contributed feature film revenue of $25.5 million to the second quarter, primarily from international pay television. The film reached an estimated 7.4 million home entertainment units sold worldwide through the end of the second quarter, net of actual and estimated future returns.
Rise of the Guardians contributed feature film revenue of $2 million to the second quarter, primarily from home entertainment. The film reached an estimated 5.7 million home entertainment units sold worldwide through the end of the second quarter, net of actual and estimated future returns.
Library titles contributed feature film revenue of $27.1 million to the second quarter.
The Television segment contributed revenue of $20 million and gross profit of $1.2 million to the second quarter, primarily from Turbo F.A.S.T. on Netflix, Classic Media content, and DreamWorks Dragons: Riders of Berk on Cartoon Network.
The Consumer Products segment contributed revenue of $18.5 million and gross profit of $7.3 million to the second quarter, mainly from the How to Train Your Dragon franchise.
The segment consisting of all other items contributed revenue of $14.1 million and gross profit of $2.3 million to the second quarter, primarily from AwesomenessTV.
The company’s second quarter 2014 results were impacted by the reduction of the contingent consideration related to its prior acquisition of AwesomenessTV. The estimated fair value of the contingent consideration was reduced by $7.2 million to $91.8 million and resulted in a gain of $0.09 per share in the quarter.
Costs of revenue for the second quarter equaled $87.5 million. Selling, general, and administrative expenses totaled $54.6 million, including $2.9 million of stock-based compensation expense.
The company’s combined income tax expenses for the second quarter was approximately $900,000. The company’s combined effective tax rate, its actual tax rate coupled with the effect of a tax sharing agreement with a former stockholder, was approximately negative 6 percent for the second quarter.
The company’s third quarter 2014 results are expected to be driven primarily by its feature film segment, including How to Train Your Dragon 2’s continued performance at the worldwide box office.
Guru Studio Launches Guru Arcade to Develop Digital IP
Guru Studio has established Guru Arcade, a new interactive venture dedicated to developing the original digital IP as well as producing brand extensions for existing television series. Guru Arcade’s initial focus is developing an all-new original gaming IP, as well as 3-D games for Dinopaws, the new preschool series recently launched on Treehouse and CBeebies.
Guru Arcade is headed by design director Ben Stirling and producer Gareth Elliott. Prior to joining the company Stirling was a senior level game designer at Ganz while Elliott brings experience in video game, film, and TV animation from industry leaders, including Ubisoft among others.
Sesame Street Celebrates 45th Anniversary
Sesame Workshop will launch Sesame Street’s 45th anniversary season on PBS Kids September 15. A bonus half-hour program will air on weekday afternoons and weekend mornings, complementing the regular weekday one-hour series.
In addition to airing on PBS stations, selected episodes of the 30-minute show will also be available for free online at pbskids.org/video, on the PBS Kids video app, on Apple TV, and on the PBS Kids Roku channel.
Celebrities and headline makers are featured in the new season, including First Lady Michelle Obama, Academy Award-winning and nominated actors Viola Davis, Jonah Hill, Sir Ian McKellen, and Lupita Nyong’O; Golden Globe-winning and nominated actors Emily Blunt, Zach Braff, Claire Danes, Tina Fey, Jane Krakowski, and Emmy Rossum; Emmy Award-winning and nominated actors Zach Galifianakis, Christina Hendricks, Mindy Kaling, Jack McBrayer, and Zachary Quinto; Grammy Award-winning musicians Michael Bublé, Macklemore, Josh Gad, Janelle Monáe, Ed Sheeran, and many others.
DreamWorks Animation Launches DreamPlace Retail Space
DreamWorks Animation announced that it is making its official foray into the retail space with the launch of DreamPlace. Described as a state-of-the-art reimagining of the holiday retail experience, DreamPlace is a 2,000-square-foot holiday cottage, which reimagines one of the signature moments of childhood—meeting Santa Claus. This interactive experience is set to debut in seven locations nationwide owned by both General Growth Properties, Inc., and Forest City Enterprises.
Prior to their mall visit, families can make appointments by app, negating the long lines for Santa, before embarking on an adventure, which includes an immersive journey with Shrek and friends. DreamPlace will debut this holiday season at the following locations.
Glendale Galleria—Glendale (Los Angeles), Calif.
The Parks at Arlington—Arlington (Dallas/Fort Worth), Texas
Fashion Show—Las Vegas, Nev.
North Point Mall—Alpharetta (Atlanta), Ga.
Oakbrook Center—Oak Brook (Chicago), Ill.
Forest City Enterprises:
Victoria Gardens—Rancho Cucamonga, Calif.
Westchester’s Ridge Hill—Yonkers, N.Y.
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