After running into difficulty last week trying to launch its initial public stock offering, Venice-based vfx/commercial studio Digital Domain is now considering raising capital through private equity. According to THE LOS ANGELES TIMES, Digital Domain was not able to close the deal at its asking price of 6 million shares at $12 to $14 a piece. The studio was trying to raise $70 million after expenses.
Today, Digital Domain President and CEO Mark Miller provided an update. He said, "Along with generating sufficient interest among investors to have allowed us to complete our IPO at an attractive valuation, Digital Domain's road show also exposed the company to a new set of private investors. We've actually received offers from private equity firms that exceed the amount we aimed to raise with the IPO, and we're evaluating everything that has been presented. Ultimately, Digital Domain's goal is to execute on our strategy. We're leaning toward remaining private at this point but we're leaving the option of an IPO open while we evaluate everything that has been presented to us."
According to the prospectus filed with the Securities and Exchange Commission, Digital Domain's growth strategy is "to establish early technology leadership" in the convergence between film and videogames. The plan is to expand its operations as both a technology and content provider. The company intends to have a larger ownership stake in animated and visual effects-driven features.
Not only is Digital Domain (SPEED RACER, THE MUMMY: TOMB OF THE DRAGON EMPEROR, THE CURIOUS CASE OF BENJAMIN BUTTON) in the early stages of developing a videogame with two filmmakers, it is also developing its own proprietary realtime game engine, which would serve as the common architecture for the production of animated features and associated games. To that end, Digital Domain "has entered into an agreement with Warner Bros. Pictures to produce a digitally animated 'proof-of-concept' piece for the possible future joint development of a full length animated feature film and videogame" based on the THUNDERCATS animated TV series, to be directed by videogame art director (GEARS OF WAR) Jerry O'Flaherty.
