Visitors Now:
Total Visits:
Total Stories:

By Washington Jr
Contributor profile | More stories

Story Views
Now:
Last Hour:
Last 24 Hours:
Total:

Digital Domain, Creator of Tupac Hologram, Files for Bankruptcy

Wednesday, September 12, 2012 7:02

% of readers think this story is Fact. Add your two cents.

(Before It's News)

Digital Domain Media Group, the company behind the special effects in “Titanic” and the “Transformers” films, filed for bankruptcy Tuesday, Reuters reports.

Digital Domain specializes in life-like human CGI and has worked on more than 90 films, including “The Curious Case of Benjamin Button,” “Star Trek,” “X-Men: First Class,” and “Pirates of the Caribbean: At World’s End.” With that kind of resume, you’d think the company would have no problem getting work.

However, with hundreds of studios producing CGI effects, Digital Domain has seen its market share shrink in recent years. As a result, the company has struggled with low margins ever since it went public 10 months ago.

Digital Domain is likely filing for Chapter 11 bankruptcy. Companies often file for Chapter 11 in order to restructure and become profitable again. In order to do so, they often renegotiate their contracts, merge with other companies, lay off part off their workforce, sell certain assets, or close off branches.

Digital Domain has announced that it’s closing its production studio in Port St. Lucie, Fla., where the company is based. As a result, nearly all of its staff at the facility has been laid off. Florida officials reportedly committed $135 million to help subsidize the construction of the production facility, leading Gov. Rick Scott to order an investigation into the company’s use of the state funds.

The company will continue to operate out of its studios in California and Vancouver, but plans to sell its production business to Searchlight for $15 million. However, that sale is subject to a one-day auction that will take place on Sept. 21. The auction is required under the bankruptcy code.

Digital Domain is currently working on the special effects for “Ender’s Game,” an adaptation of the Orson Scott Card novel. The sci-fi film is slated for a November 2013 release.

Related Resources: