Mumbai: Reliance MediaWorks and China-based Galloping Horse America are set to part-own some of the businesses of Hollywood film-maker James Cameron’s Digital Domain Productions through a USD 30.2 million bid.
The “winning bid” was submitted with Galloping Horse, a leading firm in China engaged in film and TV financing, production, distribution, advertising and publishing, Reliance MediaWorks said in a statement today. Digital Domain Media, which has churned out blockbusters such as ‘Titanic’ and ‘Avatar’, had filed for bankruptcy protection on September 11.
The sale is subject to execution of an asset purchase agreement and bankruptcy court approval in the US, the hearing for which is scheduled for today.
“A joint venture, led by Galloping Horse America, LLC in partnership with Reliance MediaWorks has submitted the winning bid to acquire the visual effects, Mothership Media and certain other businesses and assets of Digital Domain and subsidiaries for USD 30.2 million at a September 21, 2012 auction in New York,” the RMW statement said.
While RMW, part of Anil Ambani group, will hold 30 per cent stake, the majority would remain with Galloping Horse in the Digital Domain joint venture. The two companies will acquire all assets constituting the businesses of Digital Domain in feature films, advertising, visual effects, commercial production, studios in the US and Canada and a co-production stake in the feature
film “Ender’s Game”, the statement said. The businesses will continue to operate in the normal course, with the joint venture assuming ownership upon court approval, it added.
Shares of Reliance MediaWorks were trading higher by 6.28 per cent at Rs 72.80 on the BSE at 1112 hrs. “We have had a wonderful working relationship with Digital Domain over the years and we could not be happier to take it further through the joint Galloping Horse – Reliance acquisition,” said Venkatesh Roddam, CEO, Film & Media Services, RMW.
“We are looking forward to working with Digital Domain employees and customers to make the operation better and stronger,” he added. Ivy Zhong, Vice Chairman and Managing Director of Beijing Galloping Horse Film said: “We are thrilled to have found a partner in Reliance MediaWorks that is as committed as we are to ensuring Digital Domain’s continued excellence and
Digital Domain CEO Ed Ulbrich said: “Our new partners have incredible strength and reach in the global entertainment marketplace. They are powerful strategic partners that understand our business and our clients’ business. Their support enables us to continue creating the highest quality entertainment and advertising and put us in the strongest financial position that Digital Domain has ever been in.”