Beijing, China; Mumbai, India and Venice, Calif.—September 23, 2012— 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 Ender’s Game. ...
... Beijing Galloping Horse and Reliance MediaWorks have a combined enterprise value of more than $25 billion, complementary offerings and presence in multiple worldwide geographies strategic to the entertainment industry.
... “This is a great day for Digital Domain,” said Digital Domain Chief Executive Officer Ed Ulbrich. “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 puts us in the strongest financial position that Digital Domain has ever been in. We are grateful to all of the bidders and couldn’t be more pleased with this outcome.”
So a large, American visual effects house becomes a subsidiary of a fine, international media conglomerate headquartered in other lands.
This is what happens when you can't make your business model work. Now we see how the new business model performs going forward.