MUMBAI: Digital Domain, whose founders include Hollywood director James Cameron, said yesterday a Chinese-Indian joint venture has won an auction to buy some of the bankrupt US firm’s assets for $30.2m.
The venture acquiring the US company’s production assets was set up by China’s Galloping Horse in partnership with India’s Reliance MediaWorks, part of Indian billionaire Anil Ambani’s Reliance Group corporate empire, a statement said.
“This is a great day for Digital Domain,” said chief executive Ed Ulbrich commenting on the outcome of the auction held in New York.
“Our new partners have incredible strength and reach in the global entertainment marketplace.”
Digital — focusing on creating digital visual effects, computer graphics animation and digital production — has been involved in producing more than 90 major movies, including Cameron’s blockbuster “Titanic”.
But the California-based company, which filed for US bankruptcy earlier this month, has been contending with low returns as film studios globally choose from a plethora of industry players producing computer-generated images. Beijing Galloping Horse Film Co holds a 70 percent stake in the Digital Domain joint venture which must be approved by a US bankruptcy court.
Shares of Reliance MediaWorks jumped 12.85 percent to close at 77.3 rupees on the back of the announcement on the Bombay Stock Exchange.
Reliance also has a tie-up with Steven Spielberg’s Dream Works Studios signed in 2009 and has worked separately with Digital over the past few years on projects.
Galloping Horse-Reliance will acquire all assets making up the businesses of Digital Domain and its unit, Mothership, which range from feature film and advertising visual effects to commercial production.
“Digital Domain is a legend in the industry, known for its world-class quality of work,” said Ivy Zhong, managing director of Galloping Horse.
The joint venture is also getting a co-production stake in the upcoming science fiction feature film “Ender’s Game” and will purchase Digital’s studios in California and Vancouver, which provide special effects for feature films and advertisements as well as commercial production.
AFP
