Wednesday, September 12, 2012

Exclusive: DIGITAL DOMAIN Update: Bankruptcy. The Investigation Has Begun And A Potential Suitor Is Circling

A few quick updates on Digital Domain today. First of all, Digital Domain Media Group (DDMG) declared Chapter 11 today:
"Digital Domain Media Group, Inc. (NYSE: DDMG) today announced that as part of its previously announced strategic realignment, and to ensure the long-term future of its core business and facilitate a sale of assets, it has filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court."

Further, I have received two emails and I'd like to share them both with you:

- The first one is from an employee (and more then likely a now previous employee now unfortunately) of Digital Domain in Florida:

"Rick Scott's office has in fact begun an investigation and unfortunately the word word is some sort of fraud. It appears that things are going to get worse around here, before they get better. John Textor and Kevin Ambler's seem to be on the tip of everyone's tongue." 

Rick Scott is the Governor of Florida. John Textor was the just departed CEO of DDMG and Kevin Ambler is the state Rep. in Tampa. Ambler lost his re-election bid in 2010 but was brought on the DDMG board by Textor.

- The second one is from Stephen Castor of Rocket Science 3D (a 3D conversion company) who writes:
"I wanted to let you know, Rocket Science is in the midst of opening dialogue with DDMG for the purchase of the company." 

So DDMG is in play - not entirely unexpected with the weight that Digital Domain has in the marketplace and in history. Where will DDMG wind up in a year or two? I can't tell you, but it will be interesting to follow along.

Again, godspeed to the unemployed from DDMG. There is demand though - perhaps it IS an opportunity.

Sources: MarketSaw Exclusive | fxguide | Variety

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Jim Dorey
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