Reliance MediaWorks, China’s Galloping Horse acquire stake in Hollywood's Digital Domain
24 Sep 2012
Reliance MediaWorks, the post-production company of Reliance ADA has teamed up with Chinese film and TV company Galloping Horse to place a winning $30.2 million bid for Hollywood's visual effects studio Digital Domain Inc.
The $30.2 million, which is double the $15 million offered by private investment firm Searchlight Capital Partners, is subject to approval by the New York Bankruptcy Court in a hearing scheduled today.
A US subsidiary of Beijing Galloping Horse Film & TV Co will own 70 per cent of the joint venue known as Galloping Horse_Reliance, while Reliance MediaWorks will own the remaining 30 per cent.
Founded in 1993 by film director James Cameron, Stan Winston and Scott Ross, Florida-based Digital Domain filed for bankruptcy protection in September 2012 just 10 months after its initial public offering after defaulting on a $35 million dollar loan.
Digital Domain had said in its bankruptcy filing that as of 30 June it had total balance sheet assets of about $205 million and liabilities of $214 million.
The company, which has provided visual effects to over 90 movies, including True Lies, Titanic, Avatar, X-Men and others, has recently been hit by competition and stretched its finances for building its new 115,000-square-foot studio in Port St. Lucie, Florida.
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