Digital Domain Media Group, Inc. (“DDMG”) (OTCQB: DDMGQ) announced today that a joint venture, led by Galloping Horse America, LLC (“Galloping Horse”), in partnership with Reliance MediaWorks (USA), Inc., (“Galloping Horse – Reliance”) submitted the winning bid to acquire the visual effects, Mothership Media (“Mothership”) and certain other businesses and assets of Digital Domain Productions, Inc. (“Digital Domain”) and subsidiaries for $30.2 million at a September 21, 2012 auction in New York. The sale is subject to execution of an asset purchase agreement and Bankruptcy Court (“Court”) approval, the hearing for which is currently scheduled for Monday, September 24, 2012.
Galloping Horse—Reliance will acquire all assets constituting the businesses of Digital Domain and Mothership -- feature film and advertising visual effects, commercial production and virtual humans, studios in California and Vancouver, BC, Canada and a co-production stake in the feature film
. Pursuant to section 363 of the Bankruptcy Code, Galloping Horse – Reliance will acquire these assets free and clear of all claims and encumbrances, with the proceeds going to the bankruptcy estate. The businesses will continue to operate in the normal course of business, with the joint venture assuming ownership upon Court approval.
Ivy Zhong, Vice Chairman and Managing Director of Beijing Galloping Horse Film Co., Ltd., said, “Digital Domain is a legend in the industry, known for its world-class quality of work and creative talent. 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 success.”
Venkatesh Roddam, Chief Executive Officer, Film & Media Services, Reliance MediaWorks, said, “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. We are looking forward to working with Digital Domain employees and customers to make the operation better and stronger.”