Digital Domain Media Group (DDMG) announced today that is has filed for relief under Chapter 11 of the Bankruptcy Code for its Digital Domain Productions and subsidiaries while simultaneously entering into a purchase agreement with Searchlight Capital Partners for those entities.
Digital Domain Production and Mothership Media have operated under the focus of creating high quality digital visual effects, CG animation and digital production for the entertainment and advertising industries. Known for its work on effects such as Tupac Shakur’s Hologram at Coachella 2012, Tron:Legacy, Rock of Ages and more, Searchlight Capital Partners, with court approval, is looking to purchase these studios located in California and Vancouver for a total of $15 million.
“We’re excited to begin this new chapter in our history and look forward to partnering with Searchlight,” said Ulbrich, a 20-year veteran of the company. “The capital commitment of Searchlight will enable us to continue to bring our expertise to feature films, advertising, games, and other media experiences, with a focus on what we do best – creating amazing digital productions. We remain on track to deliver all of our clients’ productions on schedule, on budget and at the highest degree of quality that they expect from Digital Domain.”
During this transition, both Digital Domain and Mothership expect to operate on a regular basis, continuing work on client projects.
SEE RELATED STORIES FROM THE WDM CONTENT NETWORK:
Click here to see the latest issue of Business Review North America
“We believe in the visual effects business of Digital Domain, led by Ed Ulbrich and his team, and are strongly committed to maintaining the premiere product they create for customers and moviegoers. Upon Searchlight’s consummation of the transaction, we have committed and will continue to commit our strong financial resources and expertise to ensure that this business always remains healthy and vibrant,” said Eric L. Zinterhofer, co-Founder, Searchlight Capital Partners L.P.
The announcement from DDMG has come at a surprise and probably disappointing for some. Therefore, for a little comic relief, check out this related The Office clip in which Michael Scott “declares bankruptcy.”